An old tender offer on Bulgari by LVMH turns into a fine. CONSOB (Today) inflicts 850,000 euro fine for market abuse

It was 2011 when French LVMH took over the Roman jeweller Bulgari, whose business also includes a division of high-end leather goods and accessories, through a tender. Five years later, after the successful operation, Consob (The National Commission for Companies and the Stock Exchange) has inflicted a fine of 850,000 Euros “for market abuse”. In a bulletin published by the Commission it appears the names of Antonio Belloni (pictured above), Group Managing Director LVMH, which has received an administrative fine of 350,000 euro and an accessory interdictive penalty of eight months; Alessandro Sonvico (350,000 euros) and Pentagram, a Swiss investment company of which he was a partner, was fined 150,000 Euros. According to Consob, Belloni would communicate with Sonvico and Pentagram, “outside the ordinary course of his work and his function, with insider information regarding the contribution agreement and the consequent obligation to promote a totalitarian takeover bid on Bulgari shares”. Sonvico, in exchange, “would have made buy recommendations on the Bulgari shares to a number of investors”. As a result on March 7, 2011, the shares of the Roman jeweller recorded a theoretical 60% rise and suffered a series of suspensions for excessive volatility. Belloni decided to appeal, said LVMH, which claims to be “always been informed by Dr. Belloni of the procedure under way, and it remains serene on the final outcome of the dispute and renews its entire confidence in his general managing director, whose conduct in the group has always been characterised by fairness, transparency since his arrival in 2011.”


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