Italy

Fiat and Peugeot need each other more than ever

28 October 2020

Jeep-maker FCA made a strong profit in its key North American market. That’s helpful for marriage partner Peugeot, whose European heartland faces new pandemic lockdowns. Neither has much business in rebounding China. Their 5 bln euros of merger savings can’t come soon enough.

Cuccia’s heir deserves longer reign at Mediobanca

27 October 2020

The Milan bank that called the shots in Italian industry has successfully transitioned from power-brokering to profitability under CEO Alberto Nagel. A new pushy shareholder, Leonardo Del Vecchio, and more competition from Intesa will keep him on his toes, where he should be.

Ferragamo’s overhaul hinges on family letting go

22 October 2020

Owners of the struggling $3 bln Florentine shoemaker have explored a stake sale. Bringing in private equity worked for fellow bling merchants Versace and Valentino. But Ferragamo’s plight is such that its family owners would have to allow buyout players to hold the whip hand.

Franco-Italian dance puts UniCredit on the spot

15 October 2020

Credit Agricole is in talks with 2 bln euro Milan-based lender Banco BPM. The French bank’s presence in Italy makes it a fitting partner. Yet political opposition to a foreign owner and the threat of a stronger rival may force the bank run by Jean Pierre Mustier to the table.

UniCredit spinoff offers a 3 bln euro reward

14 October 2020

CEO Jean Pierre Mustier may split the 16 bln euro bank’s German lender from its Italian business. A demerger could boost UniCredit’s stock by 20%, Breakingviews calculations show. In a deal with Commerzbank or outright sale to BNP or Santander, the returns could be even higher.

Italian Insta-star IPO to test influencer model

12 October 2020

Fashion blogger Chiara Ferragni wants to monetise her lifestyle brand with a market debut worth nearly $100 mln. The social media celeb counts 21 mln fans and links to Dior and Lancôme. A deal would test investor faith that digital-inspired businesses are more than skin-deep.

Borsa gives Euronext a strong Italian accent

9 October 2020

The pan-European exchange has seized Milan’s bourse with a 4.3 bln euro cash bid. The chunky price reflects Borsa’s scarcity value. By teaming up with investors, including an arm of the government, CDP, Euronext hopes to avoid political landmines and lessen the financial pain.

Viewsroom: Masks, masks everywhere; Tech breakups

8 October 2020

The widespread covering of mouths and noses to stifle Covid-19 has spawned a mini-manufacturing boom, with some downsides, Sharon Lam tells Rob Cox. Yet the economic benefits of mask mandates are plentiful, Lisa Jucca argues from Milan. Plus, Congress targets Big Tech bigly.

Italy payments deal trades value for state power

5 October 2020

Nexi is buying government-controlled Sia to create a 15 bln euro national champion ready to expand in the fast-consolidating sector. State investor CDP will own 25% but appoint nearly half of the board. It’s another market test for Rome’s push for influence over key industries.

Viewsroom: Disastrous debate, Italian soccer deal

1 October 2020

The first of the U.S. presidential debates was shambolic, with almost no substance on economic policy for investors or markets to sink their teeth into. On a lighter front, though, Italy’s Serie A soccer league has a chance to regain its glory. Breakingviews columnists discuss.

Preferred wheels of nouveau riche worth a fortune

1 October 2020

Volkswagen is mulling a sale of Lamborghini, the beloved marque of crypto-traders and youthful sheikhs, Reuters reports. It might fetch $8 bln – a fat return on the reported $100 mln VW paid in 1998. CEO Herbert Diess’s battery-car focus makes disposing gas guzzlers an easy call.

Italy’s top soccer league needs a kick in the culo

30 September 2020

Once a global champion, Serie A now trails rivals in Europe on revenue and visibility. A 1.6 bln euro deal by sports-investing veteran CVC seeks to double sales by rebooting an outdated media rights system. Stronger finances would benefit clubs and make for better football.

Breakup could remove Benettons’ Italian roadblock

24 September 2020

Atlantia, the clan’s infrastructure group, is at loggerheads with Rome over the sale of its crisis-hit motorway unit. Spinning off the division could end the dispute by establishing a fair market price. It’s a risky manoeuvre, but the threat may bring the government to the table.

UniCredit should hold out for a Tuscan freebie

23 September 2020

Rome wants to wedge ailing Monte Paschi into Italy’s No. 2 bank, whose CEO, Jean Pierre Mustier, has resisted political urges to merge. Holding out for a deal as good, or better, than rival Intesa got in a similar bank rescue makes sense. Consider the financial goodies on offer.

Fiat-Peugeot deal rejig removes car merger angst

15 September 2020

The Jeep maker’s investors will get about half a jumbo dividend expected via a tie-up with the French group, but more savings and part of Faurecia. The new entity’s balance sheet will now be stronger. And lingering uncertainty about the deal happening should evaporate.

Italy is fumbling as striker and referee on Borsa

11 September 2020

Rome is tipping the scales for Euronext’s Milan bourse bid via its sovereign fund, frustrating other bidders. LSE will struggle to freely pick a winner in a race including Deutsche Boerse and SIX. State meddling isn’t new, but this deal may further raise Italy’s cost of capital.

Telecom Italia network spinoff is imperfect

1 September 2020

Selling a chunk of its grid to KKR for 1.8 bln euros should help the operator fund investment in faster connections. Other indebted European telcos may follow. But a messy merger with state-backed rival Open Fiber risks choking competition and stalling Italy’s broadband upgrade.

Swiss outsider has a chance in Borsa Italiana race

27 August 2020

Deutsche Boerse and Euronext have been favourites for buying the Milan exchange operator, worth at least 3 bln euros. Unlisted SIX has deep pockets, big ambitions, and tolerance for lower returns. Despite a non-EU base, it could be a worthy contender.

UniCredit can play in Italy’s great bank M&A game

7 August 2020

Intesa Sanpaolo’s takeover of UBI creates pressure for more mergers. By shunning domestic deals, its $21 bln rival risks missing out on cost and capital benefits. Combining UniCredit’s Italian business with a local bank could free CEO Jean Pierre Mustier’s hand for deals abroad.

Bolloré pushes ahead in lengthy Berlusconi battle

6 August 2020

Thanks to an adverse Spanish court ruling, Mediaset, controlled by the Italian ex-PM’s family, now wants a truce with Vivendi, run by the French financier. The battle of egos and strategy is not fully over. But Bolloré can now help shape the $2 bln TV group’s expansion plans.