Italy

Generali needs stable owners more than a new boss

14 September 2021

Under Philippe Donnet, the $33 bln Italian insurer’s stock price has kept up with Allianz and bested Axa, although he failed to clinch big acquisitions. Grumbling old Italian billionaires in its shareholder roster, fighting with rival owner Mediobanca, are its bigger weakness.

Road to COP: Hydrogen comes faster than you think

14 September 2021

At this fall’s United Nations climate summit, world leaders will seek to take concrete steps to fight global warming. Green hydrogen could help, but it’s still too expensive. Snam CEO Marco Alvera tells Lisa Jucca why the hydrogen energy revolution is likely to surprise us all.

Amplifon within earshot of Luxottica-like success

13 September 2021

The Italian listening-device maker is positioning itself to do for the hard of hearing what the $89 bln eyewear giant did for the sight-impaired. It’s just one-eighth the size but has ageing societies and a new generation of customers banging their eardrums to look forward to.

Italian data land grab comes at a price

31 August 2021

Fintech group ION has upped its bid for risk intelligence provider Cerved to 2 bln euros. An overall premium of 45% reflects growing demand for financial information. Offloading Cerved’s debt collection unit, worth perhaps 400 mln euros, would help recoup some of the cost.

Italy’s bank rescue has side order of moral hazard

10 August 2021

UniCredit may buy most of sickly Monte dei Paschi, with government help. It’s unclear if that means taking on its junior debt, which would be a windfall for creditors at the expense of Italian taxpayers and EU rules. Yet bond markets are starting to hope for something juicy.

Ferrari’s new boss faces early electric test

2 August 2021

The EU wants to ban new fossil fuel-powered cars from 2035. That’s likely to force incoming CEO Benedetto Vigna to accelerate the $42 bln sports-car maker’s plans to shift to battery power. How to do that without denting its luxury margins will require some deft driving.

Andrea Orcel dives for treasure in MPS wreck

30 July 2021

Three months after taking charge of UniCredit, the veteran dealmaker is considering a takeover of state-controlled Monte dei Paschi. The Tuscan lender’s capital needs, bad debts and legal woes have scared off other suitors. Strict conditions should help calm wary investors.

Zegna’s SPAC deal offers discounted path to luxury

19 July 2021

The Italian maker of pricey men’s suits is shedding its stock market aversion to list in New York via a blank-cheque company. At an enterprise value of $3.2 bln, it’s more affordable than most peers. Still, investors have to trust its ability to navigate the shift to casualwear.

Mario Draghi can help Italian recovery in two ways

9 July 2021

The end of a layoff ban, the prospect of more loan defaults and high public debt pose a triple economic challenge. Fortunately, ECB asset purchases will buy the prime minister time to focus on growth-enhancing investment and push for more flexible EU budget rules.

Atlantia’s M&A treasure chest has use-by date

30 June 2021

The infrastructure group is due a $10 bln cash windfall from the forced sale of its Italian motorway unit. Airports or toll roads are in high demand, while mobile payments bets are risky. Without a clear target, CEO Carlo Bertazzo should return more cash to investors or cut debt.

Burberry CEO steps off catwalk with job unfinished

28 June 2021

Marco Gobbetti is leaving the $13 bln maker of high-end trench coats to join smaller Italian shoe and leather group Ferragamo. His four-year drive to relaunch the British brand is incomplete. It’s a setback for Burberry’s hopes to quickly revive its underperforming share price.

Vaccine vial maker needs to take IPO shot quickly

22 June 2021

Italy’s Stevanato is surfing the pandemic wave to a U.S. listing. Valued alongside high-flying medical-kit supplier West Pharmaceutical, it could be worth over $7 bln. But as the virus recedes, sales may ebb while rivals muscle in on its turf, pricking holes in the price tag.

EssiLux has clear view to Dutch deal discount

22 June 2021

The Ray-Ban maker’s target, GrandVision, breached terms of a 7.2 bln euro takeover agreed in 2019. EssilorLuxottica can walk away, but a better option would be to negotiate a lower price. Lopping off 15% would reflect GrandVision’s weaker earnings and lack of alternative buyers.

CNH pays hefty price for driverless tractor ride

21 June 2021

The Italian-American agricultural equipment group is paying $2.1 bln for Raven Industries, which makes tech for autonomous farm machines. With few cost savings, the multiple of almost 40 times EBITDA looks rich. CNH will need a big sales boost to harvest a decent return.

Armani’s smartest fit is on Agnelli shoulders

15 June 2021

The suit maker’s 86-year-old founder, Giorgio, is measuring up prospective buyers, ideally from his native Italy. Despite some pandemic creases, the brand could fetch 8 bln euros. A sale to the Turin dynasty, rather than rivals Prada or Moncler, would preserve more of his legacy.

Italian fibre network deal has mountain to climb

9 June 2021

PM Mario Draghi is no longer pushing a marriage of superfast broadband providers. That leaves a deal reliant on market forces. A Macquarie bid inflated Open Fiber’s value to 7 bln euros, near that of more profitable Telecom Italia unit FiberCop. Agreeing a dowry will be tough.

Pizza-oven takeover may offer extra toppings

1 June 2021

Italy’s Ali Group is barging into America’s fast-food kitchens with gusto, throwing down $3.3 bln in cash to upset Welbilt’s agreed sale to Middleby. It’s a spicy move for an unlisted, virtually unknown family firm without fancy corporate-finance tools. And it just may work.

Italy sovereign wealth fund gets market friendlier

27 May 2021

Dario Scannapieco will run state investor Cassa Depositi e Prestiti. Under Fabrizio Palermo the $500 bln fund intervened boldly in M&A and hoovered up stakes in assets like Euronext. A change of the guard, under liberal Premier Mario Draghi, suggests a welcome recalibration.

Ray-Ban maker may finally live up to merger vision

24 May 2021

EssilorLuxottica has ditched a power-sharing pact that ushered in the 2018 deal but led to infighting. Axing duplication should allow the 63 bln euro group to deliver long-promised cost savings. Erasing the governance discount to listed peers could unlock 10 bln euros of value.

EU chip M&A is politically sound, financially iffy

20 May 2021

Shares in $5 bln Nordic Semiconductor surged 10% on a report that Franco-Italian rival STMicroelectronics may bid for it. A deal would be a logical bet on the trend of having chips in everyday gizmos, and satisfy politicians’ urge to keep key tech in Europe. But returns look low.