UniChem Backs Future Deputy Chairman

UK-based group UniChem, which has reached agreement on a proposed mergerwith France's Alliance Sante (Marketletter December 1), has said that the company's future deputy chairman, who is facing criminal proceedings in Italy, has UniChem's total support and confidence.

Stefano Pessina, who will hold approximately 36% of the shares in Alliance UniChem, is to face proceedings for aggravated fraudulent bankruptcy and aggravated fraud. The cases refer to a deal in 1990 when ICM Holding, in which Mr Pessina held a 40% stake, bought two firms from GEPI, an Italian state-owned company. Mr Pessina, who was not a director of ICM, held his stake through Alleanza Farmaceutica Europa.

After a preliminary investigation, the disrict attorney in Reggio, Calabria, said the case should be dropped as Mr Pessina was not involved in the fraud. A UniChem spokesman told the Marketletter that the issue was looked into in great depth when plans for the merger were being prepared, and that there is no case to answer with regards to Mr Pessina. UniChem says it is delighted to be connected with him.