(Bloomberg) -- The controlling shareholder of Davide Campari-Milano NV said it will buy up to €100 million ($111 million) of shares in a boost for the Italian spirits maker a day after its chief executive officer abruptly quit.
Shares of Campari rose as much as 8.25% in early trading on Thursday on the news that Lagfin — which already owns 51.4% of the share capital and 82.5% of the voting rights in the group — intends to purchase more stock.
Lagfin said the current market share price of Campari does not accurately reflect its true value and reaffirmed a “strong commitment” to the beverage maker and support of its longer-term growth strategies.
However, the rally in shares doesn’t fully reverse the loss on Wednesday, when the market reacted negatively to the sudden departure of Matteo Fantacchiotti, who stepped down as CEO after only five months in the role.
Fantacchiotti, 52, said he was stepping down for personal reasons. His short stint at CEO followed the long tenure of Bob Kunze-Concewitz, who expanded the Aperol maker through a series of acquisitions. Kunze-Concewitz has returned to chair a leadership transition committee.
--With assistance from Blaise Robinson.
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