Campari shares drop after €1.5 billion stake seized amid tax probe

Italian authorities have seized €1.29 billion worth of Campari shares from its controlling shareholder Lagfin amid allegations of tax evasion. The move triggered a 5% drop in Campari stock in early Monday trading.

The market reaction came after Italy’s tax police announced a major enforcement action targeting Lagfin, the holding company that controls Campari. The authorities say the seizure is linked to an ongoing investigation into the group’s tax residency shift and alleged failure to report significant capital gains.

Italian financial police said on Friday that their probe uncovered around €5.3 billion in undeclared gains tied to Lagfin’s relocation of its fiscal headquarters abroad, which authorities argue should have been taxed in Italy.

The case has raised concerns among investors and put fresh spotlight on corporate tax practices involving cross-border re-domiciliation.