EssilorLuxottica Chairman Seeks Arbitration in Power Struggle
28 March 2019 - 7:04PM
Dow Jones News
By Olivia Bugault
Delfin, the holding company of Luxottica founder and
EssilorLuxottica SA(EL.FR) Chairman Leonardo Del Vecchio, said
Thursday that it has filed an arbitration request at the
International Chamber of Commerce, asking it to verify the alleged
violations of an agreement signed in 2017 with French optical-lens
maker Essilor.
Delfin said the violations--which include the failure to comply
with the duties of loyal cooperation and good faith laid out in a
2017 combination agreement--were committed by EssilorLuxottica
vice-chairman Hubert Sagnieres and "EssilorLuxottica under Mr.
Sagnieres's interference". Delfin is therefore looking to obtain an
injunction enforcing compliance with the agreement.
In a release distributed last week, Delfin said some Essilor
representatives are deliberately preventing Delfin from exercising
its equal share of power, thereby violating a combination agreement
signed in 2017 ahead of the merger in October last year.
Mr. Sagnieres, the chief executive of Essilor, said in response
last week that the allegations were "serious and false."
Essilor and Luxottica merged last October, creating an eyewear
giant that owns Ray-Ban and LensCrafters among its dozens of
brands. The merger made Mr. Del Vecchio executive chairman of
EssilorLuxottica, while Mr. Sagnieres became the new company's
executive vice chairman. The two men would have equal powers to run
the combined company, EssilorLuxottica said at the time.
Write to Olivia Bugault at olivia.bugault@dowjones.com
(END) Dow Jones Newswires
March 28, 2019 03:49 ET (07:49 GMT)
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