Telecom Italia gives investors reasons to hope 27 Jul 2016 Fierce competition, Brazil and high debt levels are problems that don't easily go away. But Telecom Italia's new chief Flavio Cattaneo has seemingly improved things by sharply cutting costs. The group still faces challenges on many fronts, but it should be a nimble competitor.
Vivendi has upper hand in Italian cable tangle 26 Jul 2016 Mediaset says the French group run by Vincent Bollore wants out of a deal to buy its pay-TV unit. Vivendi says the two disagree over numbers. Vivendi's hard-nosed approach may reflect its stronger negotiating leverage. Still, it's bold for a serial acquirer to renege on a deal.
Italian newspaper war has “man bites dog” ending 18 Jul 2016 The battle for Corriere della Sera publisher RCS has delivered a surprise outcome: a share-based offer beat a rival cash bid, and the old guard of Italian corporate finance, led by Mediobanca, got a bloody nose. Italian corporate finance is changing, but remains no less complex.
Monte dei Paschi can be put out of its misery 15 Jul 2016 A massive bad debt sale and a 3.5 billion euro recap may be enough to sort what has long been Italy's most troubled bank. To be finally fixed MPS would need a rights issue, state capital, or a trade buyer. At least one is possible - and anything is better than the status quo.
Deal implosion better for UniCredit than Santander 12 Jul 2016 A planned merger of the Italian bank’s asset manager Pioneer with the Spanish bank’s fund arm may be scrapped. A separate sale would help new UniCredit CEO Jean-Pierre Mustier’s capital build. For Santander, which wanted to list the enlarged entity, it would be more annoying.
Cash could trump complexity in Corriere bid 11 Jul 2016 The two camps bidding for Italian media group RCS have both upped their offers. Cairo is offering a bit more for the owner of Corriere della Sera, but mostly in highly-valued stock. In volatile markets, investors may choose a less complex bid headed by Andrea Bonomi over value.
ECB takes off hair shirt; puts on kid gloves 8 Jul 2016 The euro zone central bank's vice-president hinted that restrictive Brussels state aid rules get in the way of sorting out banks. Even if that reflects reality, it jars with the ECB's mission. Wavering over state aid makes the laudable goal of banking union harder to achieve.
Yoox Net-a-Porter can dodge luxury doldrums 6 Jul 2016 Federico Marchetti snapped up rival luxury site Net-a-Porter on the cheap last year. Shares have fallen of late and the luxury sector as a whole is struggling. But with revenue at the merged group set to grow 20 percent annually, the online bit of the market looks healthier.
French foray into Italian mobile will be hard slog 6 Jul 2016 France’s Iliad will create a fourth mobile operator in Italy as part of Hutchison’s plan to merge its 3 Italia with Vimpelcom’s Wind. Iliad disrupted the French market when it burst on the scene in 2012 but Italian prices are already low. It may struggle to make the same splash.
ECB picks bad time to give Monte Paschi good slap 4 Jul 2016 The EU bank regulator wants the Tuscan bank to sell bad loans quicker. It's right, but MPS could need capital. That may require a politically contentious bail-in of Italian creditors, or Brussels to cave in to Prime Minister Matteo Renzi by watering down state aid rules.
EU’s Italy bailout more political than prudential 30 Jun 2016 The EU has approved Italy's request for funding guarantees to avoid a bank collapse. They won't be used, and don't fill banks' capital holes. But the aid may help Prime Minister Matteo Renzi show he can do deals in Brussels – thus boosting his chances in October's vital referendum.
UniCredit plucks direction out of disorder 30 Jun 2016 The Italian bank named Jean-Pierre Mustier as chief executive, much faster than expected. The potential mess from the UK vote to leave the EU means it is not a good time to be rudderless. Mustier is internationally respected, and unlikely to shirk tough decisions.
Italy first to exploit EU’s new-found weakness 29 Jun 2016 Rome is pushing for a suspension of Brussels' state aid rules to help it bail out its banks, reports say. If Italy doesn't get some slack, its struggles could upend the euro zone. The risk is a weakened EU acquiesces to a host of carve-outs that compromise the single market.
Italy best to avoid sneaky bank bailout 27 Jun 2016 The chaos from Britain’s vote to leave the EU could be a prime opportunity for Italy to dodge European rules on recapitalising lenders. Yet such a move might undermine the idea that creditors not taxpayers should stomach losses, and weaken the region’s half-baked banking union.
Bank shares take a bit of a random Brexit walk 24 Jun 2016 Globally, they’re down about 8 pct. Local pain explains Lloyds and Bank of Ireland. Sovereign debt exposure is a problem for Intesa Sanpaolo and others. Santander has a Spanish election to worry about. The likes of BofA and SocGen, though, seem swept up in a sea of confusion.
“Bremain” Italy trade only for the fleet of foot 22 Jun 2016 Forget the pound, Italian debt could be a beneficiary if Britons vote to stay in their EU referendum. Fears over a European breakup should abate, and less money will flow into safe heavens like German debt. The snag is that Italy itself is a cauldron of political risk.
EU rethink of bank debt better late than never 22 Jun 2016 The European Commission wants to harmonise rules for bank bail-inable debt. The current patchwork of different national regimes is confusing and impedes resolution. A single model would be simplest, but could limit flexibility. At the very least more standardisation is desirable.
Bollore’s Italian playbook won’t work at Ubisoft 21 Jun 2016 Vivendi, controlled by the French tycoon, owns over 20 pct of the video game maker and wants board seats. That tactic worked at struggling Telecom Italia, but Ubisoft is a different proposition whose founding family won’t go down without a fight. Minorities shouldn’t either.
Renzi’s rout weakens Italian reform momentum 20 Jun 2016 The prime minister’s centre-left party lost Rome and Turin in local elections to the radical 5-Star movement. The weak results could energise opposition to a critical referendum, and make it harder for Renzi to call elections. That could force him to water down vital reforms.
Italian banks can make a virtue out of privacy 10 Jun 2016 Bailout fund Atlante has slashed board members from rescued Banca Popolare di Vicenza. The lack of a public market listing, far from depriving the bank of necessary discipline, seems to be helping get things done. Listed peer UniCredit, by contrast, looks rudderless.