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International Industrial Participations Holding IIP N.V.
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>> Consolidated Financial Statements
Part E – Information on risks and related risk management policies
On October 30, 2007, International Industrial Participations Holding IIP N.V. (formerly Cragnotti &
Partners Capital Investment N.V.) and Sergio Cragnotti brought a civil action against UniCredit S.p.A. (as
the successor to Capitalia S.p.A. ) and Banca di Roma S.p.A. for alleged direct damages and loss of profit
quantified at �135 million resulting from:
� primarily, the breach of contractual obligations of financial assistance previously assumed in
favour of Cragnotti & Partners Capital Investment N.V., Sergio Cragnotti, and Cirio Finanziaria
S.p.A. Cirio Group, which resulted in its insolvency;
� secondarily, the illegitimate refusal by the defendants to provide Cirio Finanziaria S.p.A. and Cirio
Group the financial assistance necessary to repay a bond expiring on November 6, 2002, not
acting properly and in good faith.
The investigating magistrate set a clarification hearing for the conclusions for October 18, 2010.
Following the recent reorganisation of UniCredit Group, without prejudice to the legitimation of UniCredit
S.p.A. as the defendant, the question in law, previously attributable to Banca di Roma S.p.A. was
transferred to UniCredit Corporate Banking S.p.A..
The plaintiff’s claim in this action is completely groundless.
In consideration of such, at the time being no provisions have been made.
Gruppo Fratelli Costanzo
The companies of the Costanzo group, originally controlled by the Costanzo family, have been under
extraordinary administration since 1996. In February 2006 several representatives of the Costanzo family
brought suit for damages against the extraordinary administration and the Ministry of Production alleging
poor management of the companies in the group. The plaintiffs also sued the members of the Supervisory
Committee, of which the subsidiaries IRFIS S.p.A. and Banca di Roma (now UniCredit S.p.A.) were
members, alleging omissions in oversight. The total claim amounts to about �2.04 million. As a result of
the Catania Court’s declaration of lack of jurisdiction, the case was brought again before the Regional
Administrative Court of Lazio – Rome in November 2009. The claim for damages appears groundless and
therefore, on the basis of the opinion of defense counsel as well, no provision has been made for it. To
obtain a declaration of lack of territorial jurisdiction on the part of the Regional Administrative Court of
Lazio – Rome and, on the other hand, the presence of jurisdiction on the part of the Regional
Administrative Court of Sicily – Catania, the company Fratelli Costanzo S.p.A in A.S. (under extraordinary
administration) has appealed to the Council of State for a preliminary determination of jurisdiction.
Qui tam Complaint against Vanderbilt LLC and other UniCredit Group companies
On July 14, 2008, Frank Foy and his wife, in compliance with local New Mexican law (Qui Tam Statute),
according to which any State resident may file a legal action on behalf of the State, filed a complaint on
behalf of the State of New Mexico in relation to certain investments made by the New Mexico Educational
Retirement Board (ERB) and the State of New Mexico Investment Council (SIC) in Vanderbilt LLC (“VF”),
an indirect UniCredit S.p.A. investee company. Frank Foy claims to have been the Chief Investment
Officer of ERB and to have submitted his resignation in March 2008.
Frank Foy requests, on behalf of the State of New Mexico, compensation for damages totalling USD 360
million (including applicable penalties as part of the New Mexico Fraud against Taxpayers Act, which
provides for the possibility of treble damages) based on the New Mexico Fraud against Taxpayers Act,
asserting that Vanderbilt VF and the other defendants surreptitiously persuaded ERB and SIC to invest
USD 90 million in Vanderbilt products (i) by knowingly providing false information on the nature and risk
level of the VF investment and (ii) by guaranteeing improper contributions to then-Governor of the State of
New Mexico, Bill Richardson, and other State officials, to convince them to make the investment. Frank
Foy maintains that the State suffered damages equivalent to the entire initial investment of USD 90 million
(consequential damages) and requests an additional USD 30 million for loss of profit.