Verona Shareholders Clash Over Catullo Spin-Off and Brescia Airport Valuation

Storm erupts among Verona-based shareholders of Catullo over the Montichiari spin-off: meanwhile, the operations for establishing D’Annunzio Spa are progressing. “We are working,” reassures Franco Bettoni, President of the Chamber of Commerce, “to create the management company, which will have a Brescia-based leadership according to the agreements: D’Annunzio will be established by July and fully operational from September.” The conflict exploded last week during the assembly, but its repercussions continued into the following days, climaxing with the threat of legal action by outgoing Catullo President Massimo Ferro against Verona’s Mayor, Michela Sironi. As reported in Friday’s edition, the City of Verona, through assessor Luca Darbi, voted against Catullo Spa’s budget and the spin-off of the Montichiari business branch during the assembly. It was a thunderclap for Massimo Ferro, who was about to step down from the company’s leadership to the new President, Fernando Sanson, especially since the two City Council members representing Verona on Catullo’s Board of Directors, Bianchi and Cavalleri, have always agreed with all company decisions. Supporting assessor Darbi in the following days was Verona’s own mayor, based on an assessment of Catullo’s financial statements provided by the City of Verona’s consultant. While Ferro, as announced to the press, is preparing legal action to defend his actions, both the Brescia participants in the assembly and other stakeholders expressed their astonishment. “We were very surprised,” said Vigilio Bettinsoli, provincial Transport assessor, “by the points raised against the Montichiari spin-off. The valuation of 28 billion euros is the result of a sworn appraisal in front of a court, and the financial statements have been reviewed by an auditing firm such as Arthur Andersen.” Among the main concerns raised by Verona’s representatives is the valuation of the Brescia airport, where they argue the goodwill was not considered; they also oppose Brescia’s request to withdraw the last installment of funding (5 billion of the total 15 billion), converting what was meant to be a capital contribution (and thus a grant) into equity (the initial endowment of D’Annunzio will be exactly 33 billion, with 28 from the appraisal plus 5 from the third installment paid by Chamber of Commerce and Province of Brescia). The idea of a premium on goodwill for an airport that closed its first year of operation with a loss of 8.4 billion euros is, according to outgoing President Ferro, completely unfounded. Instead, this valuation could potentially be recovered when Catullo reduces its stake from 85% to 58% (still maintaining control) through an overpricing applied to the shares. On this point, Brescia’s side has taken precautions by securing an option allowing them to participate in the capital increase at the same old stock prices. If Verona’s concern is that, particularly with the arrival of a technical partner (either Sea or Sabco), Montichiari might become a formidable competitor, shifting focus toward Milan, the constraints imposed by Catullo are firm. Montichiari is intended to serve primarily as an outlet for cargo flights, charters, and low-cost airlines (at rock-bottom fares) that Villafranca cannot accommodate, also acting as a valuable backup, as it did during the three months of runway renovation and on Sunday, during the bomb disposal in Verona (30 flights were saved thanks to the relocation to D’Annunzio). Thus, Montichiari and Villafranca have different roles, together contributing to the system’s growth. And what is the sense of today’s heated polemics? It’s hard to grasp, unless— as some maliciously suggest— everything depends on a race to the presidency, ultimately held by — as is well known — the Verona Chamber of Commerce.