Italy

EssilorLuxottica’s boardroom truce is fuzzy

13 May 2019

Chairman Leonardo Del Vecchio and his French counterpart have asked their lieutenants to jointly lead strategy at the $54 bln eyewear giant. The ceasefire averts damaging litigation at the newly merged group. But it won’t make the search for an external CEO much easier.

Kering can stomach Gucci’s tax blow in Italy

9 May 2019

François-Henri Pinault’s maker of pricey sneakers and bags has agreed to pay Italy’s taxman 1.25 bln euros to atone for past sins. The fine is a stain on Gucci’s reputation. But parent Kering’s lean balance sheet means it can absorb the hit and still go after juicy M&A targets.

BlackRock’s Italian U-turn leaves state on hook

9 May 2019

A specialist fund run by the world’s largest asset manager abruptly pulled out of a 720 mln euro rescue of ailing lender Carige. It’s a belated admission the plan was too risky and relied on rosy assumptions. Italian taxpayers once again face the risk of another costly bailout.

UniCredit’s spring clean would aid foreign jaunts

7 May 2019

Italy’s largest bank by assets is mulling a sale of its 2 bln euro stake in local online broker Fineco. Chunky capital gains on the holding would boost UniCredit’s solvency. That’s handy if it decides to make a swoop on in-play Commerzbank.

UniCredit should approach Commerz by the side door

1 May 2019

The demise of the German lender’s merger with Deutsche Bank clears the way for its Italian peer. A straight takeover of Commerzbank could be politically tricky. Spinning off UniCredit’s German arm HVB and then merging it, however, might be an easier sell.

Huawei fracas erodes its European advantage

1 May 2019

Vodafone found flaws in the Shenzhen-based group’s kit. Huawei argues they are common in the sector, and not evidence of Beijing spying. Yet its Chinese roots mean it will be held to higher standards than European peers. Telco customers might decide it’s not worth the risk.

Belt and Road repairs fix only some potholes

25 April 2019

Beijing's gathering this week to promote its $1 trln-plus foreign policy push comes after a year of unprecedented troubles, from Pakistan to Malaysia. Under pressure, China has shown some welcome flexibility. But U.S. hostility is ramping up too; that’s far harder to pave over.

The Exchange: Marco Polo 2.0

23 April 2019

Italy irked the United States by backing Beijing’s grand infrastructure plan. The country needs to improve ties with the People’s Republic to sell more wine and other exports, says Rome’s top China expert. Overcoming trade barriers will, however, require an EU team effort.

Chinese millennials create M&A urgency for Kering

18 April 2019

Gucci’s success, especially with the mainland’s young affluent, is a blessing and a curse for Francois-Henri Pinault’s luxury empire. The Italian brand accounts for 61 pct of sales. Finding another marque, like Valentino or Patek Philippe, to balance the business won’t come cheap.

Europe soccer investors just as irrational as fans

17 April 2019

Juventus lost 270 mln euros of market value after the Italian club’s surprise exit from the UEFA Champions League. Victorious Dutch rival Ajax gained just a tenth of that amount. Television revenue alone does not explain the swing. Shareholders, like supporters, are overreacting.

UniCredit outperforms U.S. sanctions-hit benchmark

16 April 2019

Italy’s biggest bank by assets is paying $1.3 bln to settle a U.S. probe, and its German arm will enter a guilty plea. That’s a similar slap to previous European bank settlements. But with the fine less than UniCredit provisioned for, it will actually boost the bank’s capital.

Italian bank tie-ups offer exit from profit torpor

15 April 2019

Merging bailed-out Monte dei Paschi with local peers UBI or BPM could boost combined net profit by up to 50 pct. Suitors fear state meddling, a multibillion-euro cash call and legal risks. But scaling up is the only way to address chronic underperformance in a stagnant economy.

Franco-Italian nexus gets its own bankers

11 April 2019

Mediobanca is buying Paris M&A boutique Messier Maris in another high-profile cross-Alps deal. Despite close cultural ties, board rows at EssilorLuxottica and Telecom Italia show getting along is hard. Therapists may be as useful as bankers in bringing Italy and France together.

Italy’s debt conundrum will again rear its head

10 April 2019

Rome has admitted its economy will barely grow in 2019, a climbdown from forecasts. That makes it harder to keep debt in check, cut income tax, and avoid sales tax rises. EU Brexit distractions only delay the eventual choice between popular support and a new financial storm.

Fiat Chrysler-Tesla emissions deal is a band-aid

8 April 2019

The Italian-American group will include Elon Musk’s electric cars in its fleet, dodging possible European carbon-dioxide fines. Tesla will welcome the cash but is no nearer to its sales target. And Fiat Chrysler still needs a partner to meet its long-term electric challenge.

UniCredit interest gives German bank merger a push

4 April 2019

The Italian lender is considering a bid for 9 bln euro Commerzbank if talks with rival Deutsche Bank fail, the FT says. A combination with UniCredit’s German arm makes sense but would leave Deutsche weak at home. That redoubles pressure on the government to back a domestic deal.

Vincent Bolloré eyes honourable surrender in Italy

29 March 2019

Vivendi, controlled by the French tycoon, is withdrawing its plan to throw five directors appointed by Elliott off the board of Telecom Italia. The move spares Bolloré a messy defeat, but still leaves him stuck with rival Paul Singer. State investor CDP could act as a peacemaker.

Viewsroom: Who will drive off with Fiat Chrysler?

28 March 2019

Peugeot and Renault both seem keen to merge with the Italo-American carmaker. Either deal could improve earnings from smaller cars, but couldn’t plug all Fiat Chrysler’s gaps in Asia and new tech. Plus: Apple’s underwhelming new services. And can Huawei’s charm offensive succeed?

Fiat Chrysler might gain from M&A waiting game

27 March 2019

The carmaker is in demand. Already the subject of interest from Peugeot, it could also face a bid from a merged Renault-Nissan, the FT says. Such a deal would be tricky and take time. But patience could give the Agnelli clan better options to solve FCA’s tech and Asian headaches.

Peugeot needs FCA more than the other way around

25 March 2019

Carlo Tavares is reading from Sergio Marchionne’s script. A $45 bln merger would, in theory, deliver massive cost savings which could be invested in new technology. But politics makes that hard. And while PSA would gain a U.S. foothold the Agnellis would be pulled back to Europe.