Damiani refused jewels-for-shares buyback plan

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Italian jeweller hoped to "acknowledge shareholders" with swap idea.

Italian fine jewellery brand Damiani has been refused a share buyback plan in which it hopes to swap shares in the company for jewellery.

The company was told by market regulator Consob that its plans to swap jewellery for shares would potentially break the regulator’s rule that companies must treat shareholders equally and pay for share buy backs with assets "that have objective and transferable value".

According to Reuters, Damiani planned to give small shareholders the chance to swap their shares for Damiani jewels, the price of which had already been decided.

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The company’s chief executive Guido Damiani told Reuters: "I had an idea, to give a small number of shareholders the option to swap their shares for jewels which would be worth more than the current market price of the shares.

"Our share price is a little depressed and there are shareholders who might have lost money. It seemed a nice idea to acknowledge them."

The Italian business first floated its stock in 2007. Since then its shares have dropped by about 74% to €1 (86p). Damiani is set to discuss a share buyback program in return for money at its shareholder meeting tomorrow.
 

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