UniCredit coup is green light for Italian activism 14 May 2015 The bank’s shareholders blindsided their board by not giving it a majority vote. It’s only symbolic, but the move suggests power in Italy is shifting from controlling shareholders to institutional investors. Those wanting to shake up weak corporate governance are gaining power.
Italy poses conundrum for bank investors 13 May 2015 While a weak state and economy have hurt Italian banks in recent years, first-quarter earnings are encouraging. Relative stability and a reforming government could allow lenders to earn their cost of capital. The snag is that betting on Italy means paying up, or taking a punt.
Resisting Exor’s $6.8 bln is futile for PartnerRe 12 May 2015 The Agnelli family vehicle sweetened its bid – and rattled a hostile sabre. The offer clearly outguns PartnerRe’s planned merger with Axis, and there are no interlopers so far. A parallel rise in Axis stock suggests that if Exor succeeds, bankers may get a bonus deal to work on.
PartnerRe manages to cede high ground to Agnellis 5 May 2015 The Italian dynasty’s vehicle, Exor, has offered $6.4 bln for the Bermudan reinsurer. PartnerRe’s rigid board is sticking with a sweetened but lower-value merger with Axis. Exor’s hostile stance may put PartnerRe in play – as it probably should have been from the start.
Renzi’s Italian gamble is worth taking 30 Apr 2015 Premier Matteo Renzi is using confidence votes to ram though electoral reform. He risks a government collapse, and has nearly torn his own party apart. Yet the law should reshape Italian politics for the better - and help the economy.
Sergio Marchionne a man on someone else’s mission 29 Apr 2015 Fiat Chrysler’s boss sounded like an activist investor in making a solid case for car industry consolidation while haranguing analysts. Yet his bizarre plea for help with mass mergers sent the company’s shares down 5 pct. That kind of backfire smacks more of ex-VW chair Ferdinand Piech.
Agnellis pay up to claim mini-Buffett status 14 Apr 2015 Exor, the Italian family’s holding company, is offering a premium to buy PartnerRe out of a merger with fellow reinsurer Axis. The price is full and the bid lacks its rival’s synergies. But debt is cheap, and Berkshire Hathaway-style cash flow could fund further acquisitions.
ECB nudges Monte Paschi towards fire sale 13 Apr 2015 The European Central Bank wants MPS to find a merger partner, the Italian lender says. That’s a more serious issue for MPS than an awkward breach of counterparty limits. There aren’t many likely acquirers - and the regulatory pressure makes it even harder to secure a good price.
Yoox and Net-a-Porter make a striking combo 31 Mar 2015 Europe’s two biggest players in selling fancy clothes online are combining in an all-share deal worth about 3 bln euros. Both should gain, and size matters as Amazon eyes luxury. Yoox of Italy gets clear control and scale, while NAP owner Richemont keeps a toe in a growing sector.
Dufry pays up to become duty-free heavyweight 30 Mar 2015 The Swiss travel retailer will pay 3.6 bln euros with debt, or 13.8 times reported 2014 EBITDA, for Italian-listed World Duty Free. That’s bold as Dufry digests another big deal. Despite a big equity-raising backed by wealth funds, debt will hit a punchy 4.3 times EBITDA.
Rob Cox: Pirelli flirts with joke version of hell 26 Mar 2015 That’s where the chefs are British, the lovers Swiss and the mechanics French. Pirelli risks becoming the corporate equivalent: the management Italian (as in the joke), its owner a Chinese state enterprise, and other partners Russian. Minority investors won’t find it funny.
Profumo leaves Monte Paschi with mixed record 24 Mar 2015 The veteran Italian banker will leave as chair of the Sienese lender after its next rights issue. Alessandro Profumo revamped MPS governance but the bank’s future remains up in the air. As with his previous role as UniCredit CEO, there have been hits and misses.
Tronchetti and China pitch Pirelli price cleverly 23 Mar 2015 China National Chemical Corporation, aligned with Chairman Marco Tronchetti Provera, wants to buy and delist Pirelli. The 15 euros a share offer isn’t generous, but the market price is only slightly higher and the bidders aren’t forced buyers. Holdouts may not get much more.
China may finally end Pirelli’s stock market spins 20 Mar 2015 State-owned China National Chemical is buying into the listed tyremaker, run by Marco Tronchetti Provera. It’s the third big capital shift since 2013, each with control moving through a complex web of holding firms. But this one could be the last, if it leads to a full buyout.
Rob Cox: Welcome to the new, global Tangentopoli 26 Feb 2015 Corruption is causing trouble for elites from Sao Paulo to Virginia and Santiago to London. Inequality can be a tolerable byproduct of free-market capitalism, but not when the winners are profiting from a rigged system. As a new book argues, such gains encourage radicalism.
Hitachi’s $2 bln deal signals Italy open for M&A 24 Feb 2015 The Japanese firm is buying Finmeccanica’s rail units. In Italy and across Europe, sales of high-end industrial assets to the Far East can be unpopular. But Hitachi is a credible buyer paying a full price. It helps too that the seller is eager to slim down and cut debt.
Italy could host Europe’s next bout of mobile M&A 17 Feb 2015 Previous deal talks between Hutchison Whampoa and Vimpelcom led nowhere. Still, there’s a big incentive to unite the duo’s Italian units. That combination could create financial benefits worth 4.1 bln euros – and lead to a 30 percent uplift in value.
Michele Ferrero leaves $25 bln-plus Nutella empire 16 Feb 2015 The confectioner has died at 89. Blessed with a gift for creating and marketing treats, he built Italy’s biggest fortune from hazelnut spread, Kinder Eggs and Tic Tacs. Stock markets and deals were both anathema. Rivals will hope his heirs eventually tire of independence.
Italian bad bank is worth the risk 13 Feb 2015 Rome wants to set up an entity to hoover up Italian banks’ dud loans. As Italy has itself found before, these can be a waste of money for the taxpayer. But this time around, conservative valuations on the assets could help another goal – consolidation of Italy’s mutual banks.
Hugo Dixon: Renzi still living on borrowed time 2 Feb 2015 The Italian prime minister did well to secure the election of a president against the wishes of his quasi-partner, Silvio Berlusconi. Matteo Renzi’s victory could allow him to accelerate reforms. He mustn’t waste the chance. Italy’s serious problems have not gone away.