The parent of Italian beverages group Davide Campari-Milano NV said it isn't aware of any investigation following reports over alleged tax avoidance.
Luxembourg-based Lagfin responded to media reports claiming it had neglected to pay taxes to the tune of €1 billion ($1.1 billion) and said "no formal notice of assessment" had been issued, according to a statement late Wednesday. Campari separately said it isn't under investigation.
Campari shares fell as much as 3% in Milan trading on Thursday.
"Although there is no material impact on Campari's accounts, we expect a temporary negative share price reaction due to the reputational impact," Banca Akros analyst Paola Saglietti wrote in a note to clients.
The Aperol-maker came under the spotlight after Italian news agency Ansa reported authorities are investigating its parent company for not paying a so-called "exit tax" on €5 billion income.
Lagfin holds 50.91% of Campari's shares, according to data compiled by Bloomberg.
