Time for Kering to hang up its boots at Puma 24 Oct 2017 The sneaker maker has been a poor investment for the fashion group and sullies its luxury image. Puma’s recovery could let Kering get out without a loss, even if finding buyers looks tricky. Spinning off the 5 billion-euro unit would be easier, and leave less cash to squander.
Fiat Chrysler looks boxed in by M&A options 24 Oct 2017 Sergio Marchionne's revamp is picking up speed. But the carmaker is still worth little more than half the 40 bln euros at which the Agnelli family might consider a sale. That figure is beyond Chinese suitor Great Wall and a stretch for global peers. Fiat may be stuck where it is.
Italy’s north teaches Catalonia a self-rule lesson 23 Oct 2017 Areas which bring in 30 pct of Italian GDP demanded more autonomy in a referendum. Lombardy and Veneto want to keep more tax revenue. But unlike the Spanish region they stopped short of demanding independence. Orderly voting and a clear outcome will force Rome to negotiate.
Change at the top is Bank of Italy’s best option 20 Oct 2017 Governor Ignazio Visco’s uneven track record during the country’s banking crisis undermines the case for renewing his term. Sniping from politicians challenges the central bank’s independence and could hobble his replacement. But even if Visco stays he risks being a lame duck.
Vivendi can live with Italy’s “golden power” move 17 Oct 2017 Premier Paolo Gentiloni wants Telecom Italia to install state-backed directors and a special appointee to handle security matters. It’s a headache for top shareholder Vivendi. But government sentinels are preferable to being forced to spin off assets or accept state investment.
ACS faces bumpy road to join Abertis battle 13 Oct 2017 The Spanish builder is planning a cash-and-share offer for the toll-road operator using its German Hochtief unit. Beating Atlantia’s $20 billion bid faces several hurdles. The Italian group has offered more cash. For ACS, taking on a lot more debt could also be problematic.
Italy’s new voting law gives illusion of stability 12 Oct 2017 Parliament is vetting new voting rules ahead of next year’s ballot. The system may encourage a coalition of left and right parties, and hurt the radical 5-Star Movement. Yet ideological strife is likely to weaken any future government, and the chance of meaningful reforms.
EU bank plan exposes mutualisation mirage 11 Oct 2017 The euro zone is pushing a joint deposit insurance scheme to complete its banking union. But the revised backstop might only kick in if national banking systems pass an invasive health check. It’s a reminder of how far European countries are from underwriting each others’ debts.
Telecom Italia has least to gain in mogul truce 11 Oct 2017 Vivendi, chaired by Vincent Bolloré, wants to end a dispute with Silvio Berlusconi’s Mediaset. That may involve uniting the broadcaster’s TV unit with Telecom Italia, controlled by the French firm. The telco may end up with an unprofitable asset, with uncertain prospects.
Vivendi needs to swallow bitter pill in Italy 9 Oct 2017 The French conglomerate is in talks with Silvio Berlusconi’s Mediaset, after falling out over a deal to buy the mogul’s pay-TV unit. Vivendi may not get a good price, but attacks by regulators and Berlusconi’s rising political clout could make a protracted dispute more painful.
Italian high finance picks up tab for bank sins 5 Oct 2017 Sickly mid-sized lender Banca Carige wants bondholders to take a loss as part of a 1 bln euro recapitalisation. Yet it will spare retail investors, leaving more pain for banks and insurers. The country’s flawed banking model is to blame. The good news is taxpayers won’t suffer.
ECB bad-loan blitz to spur Italy insolvency reform 4 Oct 2017 The European Central Bank wants lenders to fully provision against new bad loans within seven years. That could be painful in Italy, where repossessing collateral can take even longer. The new rules give Rome a short window to finally get its bankruptcy law into shape.
ChemChina makes quick buck from Pirelli flip 3 Oct 2017 The Chinese state giant and its European partners had to put the brakes on their pricing ambitions for the tyremaker’s 6.5 bln euro IPO. Yet less than two years after taking Pirelli private, the consortium is on course to squeeze private equity-style returns from the relisting.
Telecom Italia CEO’s job: fix governance discount 29 Sep 2017 The telco named Amos Genish its new boss. The Israeli’s to-do list includes mending relations with the Italian government and clarifying those with shareholder Vivendi – as well as fighting fresh competition. Unless he addresses these problems, TI’s lowly valuation will endure.
Italy gets narrow lead in race for EU naval giant 28 Sep 2017 Shipbuilder Fincantieri has won conditional control over French rival STX, which Paris nationalised suddenly in July. The pact defuses a cross-border diplomatic row. But the real battle will be fought over the ownership of a European naval champion that is now in the making.
EU probe may be least of EssilorLuxottica problems 27 Sep 2017 Brussels is polishing its glasses for a close antitrust read of the $54 bln merger of Essilor and Luxottica. But the eyewear behemoths face other headaches, like customer defections and new competitor alliances. By the time the deal closes, its benefits could look fuzzy.
Italian banks become unlikely governance converts 26 Sep 2017 UniCredit will give its board authority to propose directors. Mediobanca has taken similar steps. This reflects the loss of power of foundations and investor blocks. Broader shareholder representation could make banks healthier, if boards resist the urge to feather their nests.
Italy’s 5-Star puts respectable face on radicalism 25 Sep 2017 The protest movement, doing well in opinion polls, has named a 31-year-old lawmaker as its leader. Luigi Di Maio’s cool appeal contrasts with founder Beppe Grillo’s vitriolic style and may win over moderate voters in 2018. But going mainstream could undermine its basic appeal.
UniCredit has narrow lead in Commerzbank M&A fight 21 Sep 2017 The Italian bank wants to buy the 14 bln euro lender. BNP Paribas is also a reported partner. A deal makes sense: the target is cheap, and Germany needs to sell a stake. UniCredit’s scale gives it an edge, but Berlin may favour the French bank, or a domestic peer like Deutsche.
Mediobanca tries to have Generali cake and eat it 20 Sep 2017 The bank may sell a 3.2 bln euro stake in Assicurazioni Generali to a vehicle shared with other investors. The baroque plan would give Mediobanca capital to grow, and allow it to keep its influence over Italy’s biggest insurer. The appeal for its potential partners is less clear.