Rothschild vs Rothschild as the feuding dynasty heads to the courts

Swiss side of the banking family sues French over ‘ownership’ of the famous name

The Latin family motto of the Rothschilds – the most famous banking name in the world – is Concordia, Integritas, Industria, which translates as ‘harmony, integrity, industry’.

But “concordia” is in short supply among the descendants of the original Rothschild banker, Mayer Amschel, whose five sons spread across Europe more than two centuries ago to establish the dynasty.

With different branches of the family still in business, a row simmering since March this year has flared up again over the use of the Rothschild name. Paris Orleans, the holding company of France’s Rothschild & Cie and the UK’s NM Rothschild investment banks brought together by Baron David de Rothschild in 2003, voted to change its name to Rothschild & Co.

However, that decision has stirred the wrath of another Rothschild business, the Swiss private bank Edmond de Rothschild, which has launched legal action over the change of name on competition grounds. Edmond de Rothschild is a relative latecomer to the scene, established in 1953 by the eponymous Baron Edmond and chaired since 1997 by his son Baron Benjamin de Rothschild, whose wealth Forbes estimates at some $1.8bn (£1.2bn). His wife Ariane is the chief executive.

Sources close to Edmond say the new name for Paris Orleans is in breach of an unofficial family agreement not to take “ownership” of the family name, in respect to different branches of the family business. Sources for the other side say no such agreement exists. Alongside Edmond, there is also RIT Capital Partners, which is the listed investment trust chaired by Jacob, now Lord, Rothschild, who split from the main branch of the family back in 1980.

Edmond de Rothschild issued a strongly worded statement in response to the Paris Orleans move. “We deplore this decision, which is tantamount to appropriating the use of the Rothschild family name, without any distinguishing element, and adds to confusion between the groups.

“It is therefore with regret that Edmond de Rothschild Group has no recourse but to continue its legal proceedings to ensure that family rules are respected and that each Rothschild, in respect for family unity, is able to pursue their activities in healthy and fair competition.”

Another twist to the row is that Edmond is the second biggest shareholder in Paris Orleans, holding 7.83 per cent of the shares and 10.57 per cent of voting rights – but Paris Orleans has refused its demands to put two directors on the company’s supervisory board, which Edmond says “amounts to a discriminating practice” against a major shareholder.

Underlying Edmond’s campaign over the name change is also Benjamin’s fear expressed in the French press last year that “what we want to avoid is them one day selling their business with the Rothschild name”. But sources close to Paris Orleans deny that, highlighting that a 2012 restructure was designed to assert long-term family control of the business. And a takeover seems remote as the “concert” of Rothschild family interests – not including Edmond’s stake – currently holds 49 per cent of the shares and 54 per cent of the voting rights.

It is understood the row will rumble on in the Paris courts into next year: it may be sometime before “concordia” breaks out.