Italy

Cox: The Agnellis will miss Marchionne most of all

25 July 2018

Tragedy and a wise call by John Elkann, the family’s then-28-year-old figurehead, put the Italian-Canadian in charge at Fiat in 2004. Marchionne, who has died at 66, turned assets worth 5.5 bln euros into nearly 60 bln. As a CEO he may be replaceable; as Elkann’s mentor he’s not.

Marchionne’s reformist legacy at risk in Italy

24 July 2018

Hailed as an Italian Thatcherite, the most successful car boss in a generation challenged rigid labour rules at home. Standing up against unions and local lobbies, he raised productivity and saved jobs. His absence will make it easier for Rome’s new bosses to go backwards.

Carige mess shows limits of ECB’s crisis toolkit

23 July 2018

The European Central Bank wants the troubled Italian lender to fix its governance and raise capital. But trying to force Carige’s hand by replacing management or fining it may spook investors, and hopes for a merger look optimistic. Moral suasion may be ECB’s least bad option.

Sergio Marchionne leaves a giant sweater to fill

21 July 2018

Ill health has forced FCA’s CEO to leave early. Successor Mike Manley runs Jeep, its most profitable brand and core to Fiat Chrysler’s five-year plan. That provides continuity. But without jumper-wearing Marchionne, Fiat’s independent future may be harder to guarantee.

Elliott may beat Juventus in returns shoot-out

11 July 2018

Paul Singer’s hedge fund has taken control of Italian soccer team AC Milan, while rival Juventus has bought goal machine Cristiano Ronaldo for 100 mln euros. Neither looks an easy financial score. But Elliott’s bargain price and Milan’s scope to improve combine for better odds.

Hutchison’s $3 bln Italian buyout is a good call

3 July 2018

The Hong Kong conglomerate is buying Russian-backed partner Veon out of their Italian mobile JV, Wind Tre. That is a bold step amid political instability and intensifying competition. But the deal looks cheap, and could prove shrewd for new CK Hutchison boss Victor Li.

Italy picks wrong medicine for job market malaise

3 July 2018

Rome wants to clamp down on short-term work contracts by diluting past labour reforms. That might help job security but would be counterproductive in cutting unemployment. Tackling a skills gap and trimming employers’ costs would do more to boost the quality and quantity of jobs.

Recordati take-under is painful reality check

2 July 2018

CVC is buying 52 pct of the Italian pharma group for 3 bln euros, a valuation 18 pct below the market price. A share rally following the death of patriarch Giovanni Recordati did not match growth prospects. Minority shareholders must now decide whether to hold out for more.

CVC’s Italian pharma foray could prompt a headache

28 June 2018

The buyout firm is in talks to acquire rare diseases player Recordati, worth 7 bln euro on the market. The group’s profit margins and international presence are appealing. But CVC may need to load on too much debt to secure decent returns.

AC Milan’s UEFA loss is Elliott’s gain

28 June 2018

The Italian soccer club has been excluded from next year’s Europa League given doubts over its finances. The ban likely curbs its struggling Chinese owners’ ability to resell it. But it boosts the chances that creditor Elliott ends up taking on the team at a rock-bottom price.

Chairman exit lays bare Carige’s governance knot

27 June 2018

Giuseppe Tesauro left the wobbly Italian lender after clashing with management. The departure highlights a squabble between top investor the Malacalza family, and financier Raffaele Mincione, who wants a merger. A boardroom feud risks delaying Carige’s much-needed turnaround.

Cox: Italy’s new Caesars have outdone Donald Trump

21 June 2018

The country’s newly elected bosses have quickly mimicked the U.S. president’s style by breaking conventions and proposing radical immigration, economic and trade policies. They’ve even gotten into spats with neighbours - and Canada. But making Rome great again will be harder.

Italian bad loan sale defies political risks

20 June 2018

Banco BPM sold 5 billion euros of dud loans for 34 percent of face value, amongst the highest prices to date. Rosy valuations and the ECB’s more lenient stance on disposals are a boon for lenders. But buyers risk downplaying the threat posed by Italy’s radical government.

DIY approach weakens Europe’s migration defences

19 June 2018

Fewer people are coming from Africa, but managing immigration is the EU’s main political issue. A unified push to screen refugees in third countries could help prevent a full-blown crisis. By contrast, piecemeal solutions in Germany and Italy would be costly and ineffective.

Italian corporate finance suffers political shock

18 June 2018

The country’s election and its turbulent aftermath contributed to a sharp drop in capital markets activity. Despite still-buoyant M&A, total investment banking fees are down 30 pct year-on-year. This is bad news for banks, but worse still for local companies seeking funding.

The Exchange: Italy’s almost premier

15 June 2018

Carlo Cottarelli talks about how he nearly led a caretaker government after President Sergio Mattarella last month rejected a euroskeptic finance minister put forward by the parties that won March elections. The former IMF economist has some advice for Italy’s new bosses.

Italy and ArcelorMittal can unpick steel knot

13 June 2018

The government’s largest party has campaigned for shutting Europe’s top smelter, now being sold to the Indian steel group. At the very least, Italy will demand more environmental and labour pledges. Yet the fact Arcelor doesn’t look to be overpaying suggests room for compromise.

Cox: The big Italy short was hiding in plain sight

12 June 2018

James Bond-style plots by hedge fund managers betting against Italy make for titillating reading. But the right-wing League has never made a secret of its dislike of the single currency. For as long as Matteo Salvini’s party remains in government, Italy will pay up for capital.

Italy finance chief’s calm words clash with policy

11 June 2018

Newly appointed Economy Minister Giovanni Tria soothed investors by promising to stick with the euro and cut debt. His comments are a marked departure from the radical government’s budget-busting promises. The economics professor’s orthodox stance may prove politically untenable.

Italy’s new cabinet dials up protectionist signal

8 June 2018

Prime Minister Giuseppe Conte’s government declared a listed telco in which Libya has long been the top investor a strategic asset, hitting shares. Retelit says it can handle the state oversight. But it sends a warning to foreigners seeking to buy Italian infrastructure.