Carige mess shows limits of ECB’s crisis toolkit 23 Jul 2018 The European Central Bank wants the troubled Italian lender to fix its governance and raise capital. But trying to force Carige’s hand by replacing management or fining it may spook investors, and hopes for a merger look optimistic. Moral suasion may be ECB’s least bad option.
Sergio Marchionne leaves a giant sweater to fill 21 Jul 2018 Ill health has forced FCA’s CEO to leave early. Successor Mike Manley runs Jeep, its most profitable brand and core to Fiat Chrysler’s five-year plan. That provides continuity. But without jumper-wearing Marchionne, Fiat’s independent future may be harder to guarantee.
Elliott may beat Juventus in returns shoot-out 11 Jul 2018 Paul Singer’s hedge fund has taken control of Italian soccer team AC Milan, while rival Juventus has bought goal machine Cristiano Ronaldo for 100 mln euros. Neither looks an easy financial score. But Elliott’s bargain price and Milan’s scope to improve combine for better odds.
Hutchison’s $3 bln Italian buyout is a good call 3 Jul 2018 The Hong Kong conglomerate is buying Russian-backed partner Veon out of their Italian mobile JV, Wind Tre. That is a bold step amid political instability and intensifying competition. But the deal looks cheap, and could prove shrewd for new CK Hutchison boss Victor Li.
Italy picks wrong medicine for job market malaise 3 Jul 2018 Rome wants to clamp down on short-term work contracts by diluting past labour reforms. That might help job security but would be counterproductive in cutting unemployment. Tackling a skills gap and trimming employers’ costs would do more to boost the quality and quantity of jobs.
Recordati take-under is painful reality check 2 Jul 2018 CVC is buying 52 pct of the Italian pharma group for 3 bln euros, a valuation 18 pct below the market price. A share rally following the death of patriarch Giovanni Recordati did not match growth prospects. Minority shareholders must now decide whether to hold out for more.
CVC’s Italian pharma foray could prompt a headache 28 Jun 2018 The buyout firm is in talks to acquire rare diseases player Recordati, worth 7 bln euro on the market. The group’s profit margins and international presence are appealing. But CVC may need to load on too much debt to secure decent returns.
AC Milan’s UEFA loss is Elliott’s gain 28 Jun 2018 The Italian soccer club has been excluded from next year’s Europa League given doubts over its finances. The ban likely curbs its struggling Chinese owners’ ability to resell it. But it boosts the chances that creditor Elliott ends up taking on the team at a rock-bottom price.
Chairman exit lays bare Carige’s governance knot 27 Jun 2018 Giuseppe Tesauro left the wobbly Italian lender after clashing with management. The departure highlights a squabble between top investor the Malacalza family, and financier Raffaele Mincione, who wants a merger. A boardroom feud risks delaying Carige’s much-needed turnaround.
Cox: Italy’s new Caesars have outdone Donald Trump 21 Jun 2018 The country’s newly elected bosses have quickly mimicked the U.S. president’s style by breaking conventions and proposing radical immigration, economic and trade policies. They’ve even gotten into spats with neighbours - and Canada. But making Rome great again will be harder.
Italian bad loan sale defies political risks 20 Jun 2018 Banco BPM sold 5 billion euros of dud loans for 34 percent of face value, amongst the highest prices to date. Rosy valuations and the ECB’s more lenient stance on disposals are a boon for lenders. But buyers risk downplaying the threat posed by Italy’s radical government.
DIY approach weakens Europe’s migration defences 19 Jun 2018 Fewer people are coming from Africa, but managing immigration is the EU’s main political issue. A unified push to screen refugees in third countries could help prevent a full-blown crisis. By contrast, piecemeal solutions in Germany and Italy would be costly and ineffective.
Italian corporate finance suffers political shock 18 Jun 2018 The country’s election and its turbulent aftermath contributed to a sharp drop in capital markets activity. Despite still-buoyant M&A, total investment banking fees are down 30 pct year-on-year. This is bad news for banks, but worse still for local companies seeking funding.
The Exchange: Italy’s almost premier 15 Jun 2018 Carlo Cottarelli talks about how he nearly led a caretaker government after President Sergio Mattarella last month rejected a euroskeptic finance minister put forward by the parties that won March elections. The former IMF economist has some advice for Italy’s new bosses.
Italy and ArcelorMittal can unpick steel knot 13 Jun 2018 The government’s largest party has campaigned for shutting Europe’s top smelter, now being sold to the Indian steel group. At the very least, Italy will demand more environmental and labour pledges. Yet the fact Arcelor doesn’t look to be overpaying suggests room for compromise.
Cox: The big Italy short was hiding in plain sight 12 Jun 2018 James Bond-style plots by hedge fund managers betting against Italy make for titillating reading. But the right-wing League has never made a secret of its dislike of the single currency. For as long as Matteo Salvini’s party remains in government, Italy will pay up for capital.
Italy finance chief’s calm words clash with policy 11 Jun 2018 Newly appointed Economy Minister Giovanni Tria soothed investors by promising to stick with the euro and cut debt. His comments are a marked departure from the radical government’s budget-busting promises. The economics professor’s orthodox stance may prove politically untenable.
Italy’s new cabinet dials up protectionist signal 8 Jun 2018 Prime Minister Giuseppe Conte’s government declared a listed telco in which Libya has long been the top investor a strategic asset, hitting shares. Retelit says it can handle the state oversight. But it sends a warning to foreigners seeking to buy Italian infrastructure.
Exclusive: “Quitaly clause” marks new risk level 8 Jun 2018 As Rome fumbles its single-currency bona fides, global investors are taking steps to protect themselves. In a possible legal first, lawyers added language to a share purchase deal to guard against Italy leaving the euro zone, “voluntarily or by means of expulsion”.
G7 risks becoming G-zero without consensus 7 Jun 2018 President Donald Trump is the sore thumb among leaders meeting in Canada on Friday. Last year’s G7 pledges were already watered down, and he hadn’t then left the global climate accord or started erecting trade barriers. The forum loses relevance if it lacks U.S. economic backing.