Campari Shares Drop After Tax Police Seize $1.5 Billion Stake

Campari Group shares declined by 5% following the seizure of €1.29 billion ($1.5 billion) in shares held by its controlling shareholder, Lagfin, by Italian tax authorities. The seizure is connected to an investigation into alleged tax evasion. Prosecutors contend that Lagfin accumulated €5.3 billion in undeclared capital gains and evaded exit taxes when transferring its fiscal residence abroad. Campari Chairman Luca Garavoglia is also under investigation for allegedly filing fraudulent tax returns as part of the probe. Lagfin, owned by the Garavoglia family, has refuted the allegations of wrongdoing. Although Campari maintains that it is not implicated in the investigation, analysts suggest the Garavoglia family might opt to sell shares to cover potential tax liabilities if the allegations are substantiated. This possibility is creating an overhang on the stock.