(Bloomberg) -- Discount stores and tobacconists were just a few of the everyday places hawking Ray-Bans before Leonardo Del Vecchio got his hands on one of the world’s top-selling sunglasses.
His Luxottica Group bought the money-losing brand in 1999 and ruthlessly overhauled it by halting sales, switching manufacturers and then reopening distribution to just a few select outlets.
Today, Italy’s second-richest person is shaking up another industry. Del Vecchio, 84, is planning to boost his stake in Mediobanca SpA to as much as 20%, further diversifying his $25.2 billion fortune. It would leave him with a $4 billion financial empire that also includes stakes in UniCredit SpA, the nation’s biggest bank, and Assicurazioni Generali SpA, the insurer that counts Mediobanca as its biggest investor.
“This will allow him to influence the strategic direction of Mediobanca, but also Generali, which I suspect is a key attraction for him,” said Georgi Gunchev, a Bloomberg Intelligence analyst. “Del Vecchio could project significant influence over the Italian financial sector.”
A spokesman for Del Vecchio didn’t respond to an email seeking comment.
The billionaire is betting big on Italian banks even as investors remain wary of their exposure to the nation’s massive debt pile. While Del Vecchio has said he wants to bring stability to Milan-based Mediobanca, analysts have speculated that he wants governance changes and more influence at Assicurazioni. In October, Del Vecchio called for a new business plan at the investment bank that’s less focused on the insurer’s returns.
Still, Mediobanca Chief Executive Officer Alberto Nagel said last week that he doesn’t expect Del Vecchio’s investment firm, Delfin, to “work against” the bank.
Delfin is already the biggest Mediobanca shareholder with a 9.9% stake it built last year. People familiar with Del Vecchio’s strategy said he wants to diversify his fortune into banking, where returns are higher than in the eyewear sector.
Shares of Mediobanca have returned 31% in the past year, including reinvested dividends, and were trading as much as 1% higher on Tuesday.
Its yield of 4.9% is more than triple that of EssilorLuxottica SA. Luxottica, which Del Vecchio founded in the 1960s en route to building the world’s biggest eyewear company, was acquired in 2018 by France’s Essilor SA. He became chairman of the combined business and remains its largest shareholder with a 32% stake.
Last year, EssilorLuxottica announced its acquisition of eyewear retailer GrandVision NV in a deal that d the smaller Dutch firm at about $8 billion. The transaction is now facing an extended probe by European Union antitrust regulators.
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