Italy

Italy’s presidential race revives political risk

24 Jan 2022

Former premier Silvio Berlusconi abandoned a divisive bid to become the country’s president. The absence of decent alternatives favours Prime Minister Mario Draghi’s ascent. If he makes the switch, however, Italy could have another ineffective government or face early elections.

Eni’s quirky rejig may turn rivals green with envy

24 Jan 2022

Italy’s $54 bln oil major may list stakes in its green energy and biofuels arms, as well as a Norwegian subsidiary. That’s different from rivals which are financing green investments by selling fossil fuels. Yet if Eni’s spinoffs get cheaper financing, others may follow suit.

Ferretti float may be back in same boat

24 Jan 2022

After a bold $1.2 bln valuation target sank its Milan IPO effort in 2019, the Italian yacht maker owned by China’s Weichai is now sailing for Hong Kong. Growth is buoyant, but luxury goods have charted a patchy course on Asian bourses. It’ll be hard, again, to make a splash.

Russian expansion is a hard sell for UniCredit

13 Jan 2022

The Italian lender may buy Otkritie, which has a $7 bln book value. After a 2017 rescue, Russia’s seventh biggest bank is fast-growing, profitable and has a strong board. But competing with state peers will be tricky, especially if its parent shuns riskier corporate clients.

Italy’s bank lemon loses most of its sourness

11 Jan 2022

BPER is set to snatch problem lender Carige for a token amount. Local rivals that collectively rescued the Genoese bank will inject 530 mln euros beforehand. That should leave the acquirer no worse off, but the synergies are unlikely to make the deal especially sweet.

Italy will miss Mario Draghi’s premiership

23 Dec 2021

The ex-ECB boss may swap his prime minister role for that of president. A political version of a CEO-turned-chairman, Draghi could still steer affairs and reassure markets of Rome’s EU faith. But he would have less clout to push reform just as elections lead to stormier politics.

Flutter makes timely bet on Italian online boom

23 Dec 2021

The UK bookie is buying Milan-based rival Sisal from buyout fund CVC for 1.9 bln euros. That’s a cheap way in to a large gaming market. With its money-spinning national lottery and pandemic-driven popularity, Sisal offers prompter returns than Flutter’s long-term U.S. punts.

KKR can still find gems in Telecom Italia’s wreck

16 Dec 2021

Chopped into bits, the struggling Italian telecom operator may be worth 38 bln euros including debt. Its network alone, in which its U.S. stalker has a stake, is probably worth almost half that. A breakup may add a quarter to the fund’s 10.8 bln euro prospective offer.

Generali CEO’s bold plan may just save his neck

15 Dec 2021

Philippe Donnet is pledging to grow earnings per share by up to 8% through 2024, ahead of Allianz, and to return capital. It won’t soothe rebel shareholders including Leonardo Del Vecchio, who want him out. But it ups the chance other investors will stick with the status quo.

Andrea Orcel’s moral victory weakens Ana Botin

10 Dec 2021

A court awarded the Italian banker 68 mln euros as compensation for Santander’s sloppy U-turn on making him its CEO. The Spanish bank will appeal. But the ruling vindicates Orcel’s decision to fight, while reviving doubts about Santander’s chair, and the rest of the board.

Andrea Orcel’s UniCredit shoots for the moon

9 Dec 2021

The new CEO wants to return a whopping 16 bln euros by 2024, some 60% of the Italian bank’s market cap. Such bold pledges will delight long-suffering investors. Buoyant European growth should help, but if the pandemic recovery falters, Orcel’s M&A instincts will start kicking in.

Bondholders are biggest losers in telco LBO frenzy

1 Dec 2021

Telecom Italia’s bonds fell on fears that the securities may not be redeemed if KKR’s $37 bln buyout succeeds. The M&A boom has made unexpected targets of large public companies. Even when investors enjoy stronger protections, as with UK rival BT, these offer limited solace.

Telecom Italia will keep bankers busy in 2022

29 Nov 2021

KKR’s $12 bln proposal has put the telco in play. The process is likely to involve multiple bidders and key actors including French shareholder Vivendi and the Italian government. As with Telecom Italia’s 1999 leveraged takeover, it’s a boon for bankers, lawyers and consultants.

Review: House of Gucci’s broken family capitalism

26 Nov 2021

A sprawling dynasty can lead to corporate disaster. Ridley Scott’s star-studded movie is a kaleidoscopic portrait of the infighting that saw the Gucci family lose control of their namesake brand. Stepping aside at the right time can make all the difference.

Cox: Telecom Italia and the curse of the euro era

25 Nov 2021

The 1999 buyout of Italy’s phone monopoly baptised Europe’s new single currency. The years since have been terrible for the company and its many trophy-seeking owners, who have lost some $23 bln. Here’s why the latest offer from private equity firm KKR offers hope for redemption.

Viewsroom: Barbarians invade Rome; Biden’s Fed

25 Nov 2021

The board of Italy’s phone monopoly has a golden opportunity to end years of creeping control, poor governance and dismal performance by considering a sale following the unsolicited $12 bln bid from KKR. And Gina Chon explains why Jay Powell has the hardest job in finance.

KKR has wiggle room to sweeten Telecom Italia bid

24 Nov 2021

The U.S. private equity group will need to raise its 33 bln euro offer for the Italian telco to win over investors Vivendi and CDP. It’s already the largest buyout in European history. But KKR has ways to fund the deal without overloading Telecom Italia with debt.

KKR bid is next act in Telecom Italia soap opera

22 Nov 2021

The buyout group wants to take the phone operator private for 10.8 bln euros. Offering less than the pre-pandemic share price looks opportunistic. Yet the 47% premium will tempt all but top investor Vivendi, which is nursing hefty losses. The board should start a conversation.

Prada’s new look merits fashion league promotion

18 Nov 2021

After years of drift, the $18 bln Italian brand has got a grip on its retail chain, axed discounts and rejuvenated its image. That should help it hit a 4.5 bln euro sales target and double its margins. For investors, the catch-up with snazzier rivals is something worth having.

Ariston IPO is enticing play on green energy wave

17 Nov 2021

The family-owned maker of heat pumps and water heaters is going public in Milan at a valuation of up to 4 bln euros. With demand for energy-efficient heating systems set to boom, it’s in a sweet spot. A discount to rivals A.O. Smith and NIBE Industrier should help inflate demand.