If the billionaire Agnelli family thought its investment in Royal Philips NV would rally once the regulatory fallout of the health-care company’s sleep apnea device recall became clear, it was wrong. Monday brought long-awaited details of a preliminary accord with US regulators that prevent Philips from selling new sleep and respiratory devices in the US for the foreseeable future. The 7% plunge in the shares shows that when a known unknown is dealt with, shareholders don’t always cheer certainty for its own sake.

Exor NV, the Agnelli-controlled investment vehicle, is shifting its portfolio toward health-care and technology investments, funded largely by the €9.3 billion ($10.1 billion) sale of insurer PartnerRe in 2022. Its main holdings today are carmakers Stellantis NV and Ferrari NV. The 15% stake in Philips, unveiled in mid-August with a commitment to hold for at least three years, was an opportunistic and risky way of pursuing the new asset-allocation strategy. Philips has been in crisis since mid-2021, following a recall of sleep-aid machines amid safety concerns surrounding degradation of the foam previously used to dampen operating noise.

QOSHE - Agnellis’ Philips Stake Stumble Warns on Known Unknowns - Chris Hughes
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Agnellis’ Philips Stake Stumble Warns on Known Unknowns

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29.01.2024

If the billionaire Agnelli family thought its investment in Royal Philips NV would rally once the regulatory fallout of the health-care company’s sleep apnea device recall became clear, it was wrong. Monday brought long-awaited details of a preliminary accord with US regulators........

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