Luxottica shares fall amid speculation Andrea Guerra leaving 'over Google Glass row'
Eyewear giant recently agreed a partnership with Google to develop fashionable versions of Google Glass
Wednesday 20 August 2014
Italian luxury eyewear group Luxottica could lose its chief executive Andrea Guerra amid rumours of a falling out over politics, strategy and a deal with Google Glass.
Reports in Italy suggest Mr Guerra has fallen out with chairman and founder Leonardo Del Vecchio - Italy’s second richest man. Shares in the world's largest producer and retailer of sunglasses and prescription glasses fell sharply and closed down nearly 4 per cent following press reports.
Reports suggest the disagreement between the two men could be about Mr Guerra’s plan to become a minister in the government of Prime Minister Matteo Renzi, or could be about the strategy for the company. It recently agreed a partnership with Google to develop fashionable versions of Google’s smart eyewear - Google Glass.
Luxottica, which owns brands Sunglass Hut, Ray-Ban and Oakley and produces sunglasses for a variety of top designer labels, has performed strongly since Mr Guerra joined ten years ago and today’s share price reaction was due to concerns about who might take over from him.
Luca Solca, luxury analyst at Exane BNP Paribas, said family-controlled business often have issues with chief executives from outside the family. Mr Del Vecchio owns 66.5 per cent, with fashion designer Giorgio Armani holding another 5 per cent.
Mr Solca said: "Controlling majority shareholders "consume" chief executives after a while. This has been a trademark of Italian family based capitalism. Think of FIAT, for example. Having said that, Mr Guerra's track record over ten years would look pretty solid in most institutional investors' eyes."
A spokesman for Luxottica said: “The group is not commenting on media speculation. At present no board meeting has been called. We can confirm that for some time the chairman Leonardo Del Vecchio and the chief executive Andrea Guerra have been debating the best strategic direction for the group.”
- 1 Mario Balotelli: Staff at arson-hit Manchester Dogs' Home convinced Liverpool striker is behind five-figure donation
- 2 There is literally not a single woman in this iPhone 6 queue
- 3 Scottish independence: Tory revolt against 'devo max' grows as Rail Minister Claire Perry joins
- 4 Hitler’s former food taster reveals the horrors of the Wolf’s Lair
- 5 Scottish independence referendum: JK Rowling, Russell Brand, Nigel Farage and more react to the 'No' vote
Scottish independence referendum: Frankie Boyle reacts to nation's 'No' vote - 'To be fair, I've always hated Scotland'
Scottish independence referendum results: David Cameron pledges plans for 'English votes for English laws' by January
Scottish independence live: Scotland gives a clear 'No' in historic referendum - as it happened
Scottish referendum results: David Cameron set to unveil major devolution of powers to England
Scottish independence: Tory revolt against 'devo max' grows as Rail Minister Claire Perry joins
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
Scottish independence referendum: A nation divided against itself
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
Russia freezes Ukraine into submission: Kiev admits country doesn't have enough fuel for winter
Scottish independence: The Queen breaks silence on referendum debate – as think tank warns of £14bn black hole if Scotland votes Yes
Archbishop of Canterbury admits doubts about existence of God
iJobs Money & Business
£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...
Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...
£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...