Italy

Ray-Ban tycoon leaves behind unfinished business

27 Jun 2022

EssilorLuxottica Chairman Leonardo Del Vecchio has died at 87 without publicly anointing an heir. That raises questions about the eyewear giant’s future and investments in Mediobanca and Generali. Though trusted lieutenants may reassure investors, they lack his track record.

China slowdown prompts healthy luxury rethink

21 Jun 2022

Brands like Gucci and Louis Vuitton have made a killing in China's $63 bln market. Yet Beijing's Covid-19 policies and rising nationalism among young shoppers show the perils of being overdependent on one consumer group. A pivot into the United States and the Gulf offers a hedge.

Ferrari races into a greener, pricier world

16 Jun 2022

The luxury sports carmaker wants to boost revenue to 6.7 bln euros by 2026 and nearly double EBITDA. That will fund investment in electric vehicles, where new CEO Benedetto Vigna needs to catch up. Success rests on convincing its millionaire clients to pay ever higher prices.

Central banks still have space to fight inflation

15 Jun 2022

Jerome Powell and Christine Lagarde are tightening monetary policy to try to control soaring prices. Previous shocks have prompted the Fed and ECB chiefs to pause or loosen again. Despite plunging equity prices this time, calmer credit markets imply the “Fed Put” is far off.

Italian banks face return of sovereign embrace

14 Jun 2022

A decade ago, soaring government bond yields threatened to drag down domestic lenders. Today, banks have shrunk state debt to less than 7% of total assets, while cutting dud loans and building capital buffers. As the ECB retreats, the pressure to load up again will increase.

Hydrogen IPO finds rare pocket of market optimism

6 Jun 2022

Italy’s De Nora, which makes components to produce a green variety of the gas, is seeking a June listing. That’s bold after choppy markets deflated other high-flying upstarts. Tapping into Europe’s drive to end its fossil-fuel dependency will help pump up a 5 bln euro valuation.

AC Milan’s soccer triumph rubs off on Elliott

1 Jun 2022

The U.S. fund is selling the Serie A winner to private equity firm RedBird for $1.3 bln, nearly 5 times sales. That’s rich for a club with chronic losses. After a challenging first half and the pandemic, Elliott looks to have made a respectable return from the Italian team.

Italian telecom network Plan B will be hurdle race

30 May 2022

Telecom Italia and a state-controlled rival want to merge their broadband networks. For KKR, which owns a stake in the $6 bln incumbent’s last-mile unit, it’s a consolation after a failed takeover. Yet any agreement will need to win over investors, bondholders, and regulators.

Italy’s financial order repels attack on Generali

29 Apr 2022

Mediobanca-backed CEO Philippe Donnet overcame opposition from investors with 30% of the $30 bln insurer to win a third term. That preserves a key financial link with the merchant bank. Donnet now has to deliver on his growth plan. The rebel investors will keep him on his toes.

Italian motorway menu serves the Benettons well

21 Apr 2022

The dynasty may merge its Autogrill chain with $4 bln Swiss duty-free specialist Dufry. Though slightly bigger, the latter is suffering the worse Covid-19 hangover. Even though they’re surrendering control, the Benettons would still have a strong hand to get a good deal.

Blackstone’s Italian gambit can stay on the road

14 Apr 2022

Looking to deter a rival bid, the buyout group has teamed up with the Benettons to take infrastructure group Atlantia private. The 19 bln euro equity value looks steep. Yet inflation protection from concession assets and cash from an upcoming sale justifies the swoop.

KKR red card is a Telecom Italia own goal

8 Apr 2022

After months of fumbling, the Italian operator hung up on the U.S. fund’s 10.8 bln euro takeover approach. Stiff opposition in Italy had dampened KKR’s interest. For CEO Pietro Labriola, revamping the hard-pressed group under intense market scrutiny will be twice as hard.

Pérez vs. Benettons will be an uphill struggle

7 Apr 2022

ACS, run by Spanish magnate Florentino Pérez, has sided with Brookfield and GIP to buy road group Atlantia, 33%-owned by the Italian tycoons. A takeover could cost 20 bln euros net of debt, but a looming 8 bln euro asset sale would help. Winning over the Benettons will be harder.

Russian yachts stranded in choppy sanctions waters

1 Apr 2022

France, Italy and Britain have grabbed headlines by seizing luxury cruisers linked to sanctioned oligarchs. But proving ownership is tricky, while keeping the expensive boats afloat may require state money or navigating complex rules. Selling them will be an even rougher voyage.

Generali investors better off with devil they know

30 Mar 2022

A rebel billionaire is vying for control of the 190-year-old insurer, a linchpin of Italian finance. Francesco Caltagirone promises higher returns and bolder M&A than under CEO Philippe Donnet. Fuzzy targets and slowing growth should make shareholders wary of switching horses.

CVC throws Telecom Italia a tricky lifeline

29 Mar 2022

The buyout firm wants to buy 49% of the troubled telco’s corporate business, which it values at 6 bln euros. A deal would help CEO Pietro Labriola trim debt. But it could complicate KKR’s push to take the group private. More crossed wires is the last thing shareholders need.

Mediobanca’s fortunes are tied to Generali

9 Feb 2022

The bank’s 13% stake in the Italian insurer accounts for a third of its net profit. Mediobanca could sell the 3.8 bln euro shareholding to finance deals, but targets are expensive. Even if CEO Alberto Nagel loses a boardroom battle at Generali, his financial future rests on it.

Italy’s top banks raise stakes in shareholder duel

4 Feb 2022

Intesa Sanpaolo CEO Carlo Messina pledged to lift the lender’s return on tangible equity to 14% by 2025, topping a bold target set by new UniCredit boss Andrea Orcel. Intesa starts from a strong base but lacks M&A options. Rising interest rates could give both an extra boost.

The Exchange: UniCredit’s Andrea Orcel

3 Feb 2022

The Italian banker wants to return 16 bln euros to investors by 2024. Choppy markets and growing geopolitical risks raise the bar for European banks’ promised returns. UniCredit CEO Andrea Orcel tells Breakingviews how his $35 bln lender can navigate through uncertain times.

Italy energy firm dive is Rome’s latest hot potato

1 Feb 2022

Oil services firm Saipem may need at least 1 bln euros of fresh equity after warning of a loss just three months into a new business plan. The shock puts pressure on new CEO Francesco Caio. Given the uncertainty, top investors Eni and the Italian state may foot most of the bill.