Wild weather turns up heat on EU debt stragglers 2 Aug 2023 Scorching temperatures have ruined harvests, strained infrastructure and dimmed southern Europe’s tourist appeal. If heatwaves’ frequency intensifies, the bill to prevent and fix damages will rise. Fiscal laggards like Italy and Greece may need extra help from Europe.
Europe’s listless IPOs are red flag for big floats 31 Jul 2023 The region’s string of mostly mid-sized initial public offerings this year are now just 3% above their listing price on average. Such poor performance will make investors wary of backing new ones. That will give larger float candidates, like CVC and Galderma, pause for thought.
Kering dons Valentino scent to ease Gucci malaise 28 Jul 2023 The $72 bln luxury giant is buying 30% of the Italian fashion house for 1.7 bln euros. The premium price reflects François-Henri Pinault’s need to cut its reliance on tottering star brand Gucci. Yet Valentino is much smaller, and its acquirer may not own it in full until 2028.
Ghost of Silicon Valley Bank turns up in Italy 4 Jul 2023 Like the bust US lender, insurer Eurovita bought up long-dated state bonds. A mix of losses from rising rates and redemptions mean banks that sold its wares have had to extend 6 bln euros of guarantees. As with SVB it’s a special case, but one that will still worry regulators.
Bank of Italy pick will give Italy an EU headache 28 Jun 2023 ECB member Fabio Panetta is heading home to lead the national central bank. That will remove a dove from Europe’s rate-setters, just as they pursue a hard line on inflation. To send another Italian to Frankfurt, premier Giorgia Meloni may need to compromise on Brussels issues.
Eni’s bet on gas comes at an acceptable price 23 Jun 2023 The Italian group and Var Energi, in which it holds a 63% stake, are buying Neptune Energy for $4.9 bln. The seller’s private equity owners once hoped for an IPO at twice that level. Bulking up in fossil fuels carries risks, but Eni’s price at least creates some sort of buffer.
Pirelli boss turns de-risking into opportunity 19 Jun 2023 Rome has limited the power of the $5 bln tyremaker’s Chinese shareholder, without forcing it to sell. Pirelli and Italy get to de-risk China ties without burning too many bridges. But the real winner is CEO Marco Tronchetti Provera, who has again found a way to come out on top.
Moncler can inspire Golden Goose’s next step 15 Jun 2023 Skirting a pandemic and war, the maker of Super-Star sneakers doubled sales to 500 mln euros in three years, with rich margins. That’s where Remo Ruffini’s down jackets brand stood before its 2013 IPO. It may tempt owner Permira into a $3 bln sale, or Moncler into a purchase.
Berlusconi invented the entrepreneur as politician 12 Jun 2023 The tycoon-turned-Italian premier has died aged 86. He pioneered the use of wealth and media to achieve political power. Though his party is unlikely to survive his departure and his business empire is much weakened, his unorthodox methods spawned imitators across the West.
Yacht maker’s Italy pivot shows the way for Prada 8 Jun 2023 A year after its Hong Kong IPO, the Chinese-owned maker of boats loved by Hollywood stars is rushing to also list shares in Milan. The move offers scant valuation upside, but hedges geopolitical risks. If Ferretti can pull it off, luxury brand Prada will follow.
Pirelli CEO pivots from globalisation to trade war 5 Jun 2023 Marco Tronchetti Provera teamed up with a Chinese buyer to take the tyremaker private in 2015. Now Sinochem’s 37% stake poses business and governance risks for the $5 bln company. An appeal to Italy’s nationalist government may help the veteran industrialist maintain control.
Mediobanca chief’s 20-year race has one more lap 24 May 2023 For two decades, Alberto Nagel has fought market and boardroom crises while diversifying the Italian bank and booking fat returns. His new business plan lacks fireworks. But fear of destabilisation will prompt restless core investors to back the veteran banker for one more term.
Debt conundrum gives Italy weak hand in EU talks 18 May 2023 The pandemic and the war have taken the country’s indebtedness off investors’ radar. Yet high interest rates, slower growth and a budget deficit mean Rome will struggle to cut its fiscal burden. That makes it harder for PM Giorgia Meloni to ask for lenient European rules.
Telecom Italia is stuck in risky game of chicken 4 May 2023 The telco’s board must decide on rival bids from KKR and state investor CDP for its fixed-line grid. None comes close to the 31 bln euro price wanted by top investor Vivendi, but cash is needed to slash debt. If neither side blinks, the group could face a messy capital increase.
Italy’s Leonardo risks missing defence bonanza 3 May 2023 The $7 bln Italian electronics and helicopter group, 30%-owned by the state, trades at a discount to peers. Leonardo is not fully capitalising on rising EU military budgets after the Ukraine war. Investor support to add external expertise to the board is sorely needed.
Apollo’s Italy gambling IPO plays it suitably safe 21 Apr 2023 The US buyout fund is finalising a $3 bln listing of Italian betting firm Lottomatica. That will help slash the company’s debt and fund growth in Europe’s second-biggest gaming market. But the price discount suggests the IPO market remains a domain for the cautious and the needy.
Italy’s corporate power grab nears expiry date 18 Apr 2023 Premier Giorgia Meloni promised to rely on merit to pick new directors at state-backed firms like $54 bln Eni and $7 bln Leonardo. Instead, she’s stuffing boards with loyalists. Hedge fund efforts to push back at $64 bln green star Enel are a reminder the market also has a say.
Rome foot-dragging can help EU kick bad aid habits 18 Apr 2023 The Italian government is clashing with Brussels over 19 bln euros in pandemic loans. Missing milestones is bad policy for the biggest recipient of European aid. But the country’s pushback may have a silver lining if it prompts the bloc to be more flexible with money.
Pirelli will help read China investment tea leaves 4 Apr 2023 Sinochem has denied plans to ditch a 37% stake in the Italian tyremaker. But Beijing’s pressure on state-controlled firms to boost shareholder value and dump non-core assets may lead to a sale. Pirelli’s fate will have a bearing on China’s $1 trln overseas portfolio.
Ferrari’s green journey takes surprise turn 30 Mar 2023 Europe’s plan to support carbon-neutral fuels is good news for the $50 bln luxury carmaker, CEO Benedetto Vigna says on the Exchange podcast. It will allow the group to flog the roaring engines that made its fortune. Electric cars remain a goal, but self-driving Ferraris are not.