By Lisa Jucca
LONDON (Reuters) - UniCredit (CRDI.MI: Quote, Profile, Research, Stock Buzz) Deputy CEO Sergio Ermotti said he expected corporate governance changes at domestic insurance giant Generali (GASI.MI: Quote, Profile, Research, Stock Buzz) would take time, despite pressure from hedge fund Algebris.
Algebris, which owns a small stake in Generali, caused uproar in Italy two weeks ago when it openly called for better governance and a management shakeout at Generali, Europe's number three insurer by market value.
"I think shareholders should be vocal about their rights. As long as their points are presented in their fair and professional way, we have to accept that shareholders have a right to raise their concerns and voices," Ermotti told the Reuters Finance Summit.
"That something can be done quickly at Generali is not a realistic assumption. There are so many interests in Generali that it will take time," he added.
Ermotti said UniCredit, which ranks number three in Europe by market capitalization, was making an effort to avoid joining shareholder pacts at Italian companies.
It was also looking to shed non-strategic investments, but it wanted to protect its interests in the country.
The bank is still an investor in Generali, even though it is planning to sell its stake, and it is the largest shareholder in Generali's dominant shareholder Mediobanca (MDBI.MI: Quote, Profile, Research, Stock Buzz), even after committing to more than halving its investment there.
The two financial institutions are central to Italian finance as a complex web of cross-shareholdings anchors them tightly to the core of Italy's corporate world.
"Ideally, we don't think we should be owning stakes in Generali and Mediobanca," he said.
"We want to help Mediobanca and Generali to develop into stand-alone businesses with free float and a shareholder base free of pacts. (When) we feel this is achievable without damaging ourselves, we will do it. But we don't want to be controlled at the end of the day. That's the issue."
(Editing by Will Waterman)
© Thomson Reuters 2009. All rights reserved.
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