Shares in Campari fell 5% today after Italian tax police seized €1.29 billion worth of shares in the Italian drinks maker held by its controlling shareholder for alleged tax evasion.
On Friday, police said they were seizing Campari shares held by Lagfin after a probe found €5.3 billion of undeclared capital gains on which the controlling company allegedly failed to pay an exit tax levied on firms that transfer their fiscal residence abroad.
Lagfin, which is owned by Italy's Garavoglia family, has denied any wrongdoing.
The Campari group merged its original holding company Alicros, headquartered near Milan, into Luxembourg-based Lagfin in 2019. Milan prosecutors started looking into the move just over a year ago, Reuters has reported.
Lagfin said it held more than 80% of Campari's voting rights, meaning the precautionary seizure would not affect its position as controlling shareholder.
The seized amount represents about 17% of Campari's ordinary shares, based on Friday's closing price.
