Campari Drops After Italy Seizes Shares in Tax-Fraud Probe

Davide Campari-Milano NV shares fell after Italian prosecutors on Friday ordered the seizure of around €1.3 billion ($1.5 billion) in shares from the holding company that controls the drinks maker.

Shares of Campari fell as much as 6% in early trading in Milan on Monday, the most on an intraday basis since April.

The investigation focuses on Luxembourg-based holding company Lagfin SCA’s alleged failure to pay exit tax on about €5.3 billion of capital gains generated when it absorbed an Italian subsidiary that held Campari’s controlling stake. Prosecutors say the reorganization effectively shifted the group’s management and tax base ...