Juventus drama calls for an Exor exit strategy 29 Nov 2022 Chair Andrea Agnelli and the rest of the soccer club’s board quit amid an accounting scandal. For top investor Exor, controlled by the Agnelli clan, it’s a chance to rethink long-held ties to the loss-making team. After a cleanup, a 2.3 bln euro price tag looks plausible.
Gucci designer’s exit boosts Kering’s M&A urgency 24 Nov 2022 Alessandro Michele’s departure from the bling group’s top label puts CEO François-Henri Pinault on the spot. Finding a new creative star will be hard, and he needs more brands to cut his $71 bln firm’s reliance on Gucci. A recent miss on Tom Ford also weakens his dealmaking hand.
Debt woes will restrain Enel’s global ambitions 22 Nov 2022 CEO Francesco Starace vowed to cut the 52 bln euro utility’s net debt by 21 bln euros, amid spiralling gas costs. Focusing on fewer regions looks sensible and may shield investments and dividends. But it will hinder Enel’s efforts to stay one of the top energy transition winners.
Monte Paschi cash gambit leaves bitter aftertaste 3 Nov 2022 The bailed-out lender secured 93% backing for its 2.5 bln euro cash call. Financially, that's a success. But investors will include bank foundations, a past source of political meddling. A conversion of junior bonds would have saved taxpayers high fees and interest payments.
Italy’s new premier starts with a big faux pas 27 Oct 2022 Giorgia Meloni vowed to hike a 2,000 euro cap on cash payments, reversing attempts to boost electronic transactions. That will make it harder to track 100 bln euros of annual untaxed revenue. With debt at 147% of GDP, Italy cannot afford to be complacent on chronic tax evasion.
Italy’s new boss is missing a trick on tax evasion 24 Oct 2022 Public debt at 147% of GDP and a slowing economy limit Prime Minister Giorgia Meloni’s scope to curb an energy crisis and keep spending promises. Tackling endemic tax evasion would give her more fiscal ammunition. Yet promoting the use of cash and tax amnesties will not help.
Prada homecoming would set a financial fashion 18 Oct 2022 A decade after its Hong Kong IPO, the $12 bln maker of Galleria bags is seeking to trade also in Milan. That will help it into European indices and create a hedge against Western decoupling from China. It would also make sole listings in the Asian hub less desirable.
Monte Paschi life raft has yet to reach safe port 13 Oct 2022 Five years after a state bailout, the lender has secured last-minute backing for a new 2.5 bln euro rights issue. Stronger capital and fewer costs will make MPS a more palatable target. But buyers would need hefty profit assumptions to pay anything other than a lowball price.
UK mess bolsters case for Italian budget prudence 6 Oct 2022 Market turmoil forced British Prime Minister Liz Truss to partly ditch unfunded tax cuts. The humbling saga should help Italian would-be premier Giorgia Meloni resist her allies’ spending requests. Picking a technocrat as finance minister would give investors further comfort.
Italy’s right-wing winners inherit poison chalice 26 Sep 2022 Nationalist Giorgia Meloni, EU-sceptic Matteo Salvini and convicted former PM Silvio Berlusconi scored an election victory. Despite campaign unity, they disagree on sanctions and spending. The rivalries risk undermining the high-debt nation’s ability to tackle its energy crisis.
Italy’s first female leader, Amazon’s monopoly 22 Sep 2022 Far-right leader Giorgia Meloni is favourite to become prime minister after Sunday’s election. In this Viewsroom podcast, Breakingviews columnists debate how she will handle Rome’s debt, which is expected to reach 148% of GDP. And: the online retail giant’s antitrust battle.
Corporate lemons will vex Italy’s next government 22 Sep 2022 Premier Mario Draghi couldn’t sell bailed-out Monte Paschi nor halt a share slide at indebted Telecom Italia. If right-wing Giorgia Meloni wins Sunday’s election, she will have to untangle such company knots. Her zeal for patriotic solutions may prove costly and inefficient.
How Italy could tip into a tailspin 19 Sep 2022 Investors think the country will probably muddle through if Giorgia Meloni, a former post-fascist and eurosceptic, becomes its next prime minister. But there’s still a medium-term risk that Italy’s massive debt will spin out of control, says Hugo Dixon.
Italy’s first female PM is red flag for workwomen 16 Sep 2022 Ultra-right politician Giorgia Meloni is likely to become the next premier. She opposes boardroom quotas that have lifted female representation from less than 7% to 41% in a decade. Scrapping them would be a setback for a country struggling with stubbornly low female employment.
Italy’s next government has tricky to-do list 13 Sep 2022 A rightist coalition is poised to win Italian general elections this month. In this week’s Exchange podcast Muzinich’s Fabrizio Pagani discusses the next executive’s immediate economic challenges. These include coping with an energy crisis, high public debt and a bailed-out bank.
Alitalia successor approaches safe landing spot 1 Sep 2022 Investor Certares has bid 700 mln euros for a majority of ITA, the shrunken offshoot of the troubled airline. Backing from Air France and Delta should ensure better landing slots and access to lucrative U.S. routes. It may avoid more bailouts, but Rome will still have a big say.
Reality will tame next Italy PM’s spending plans 11 Aug 2022 Giorgia Meloni is on track to lead Rome’s next government. Her rightist political alliance favours big tax cuts, fiddling with 200 bln euros of European recovery funds and state intervention in Italy Inc. High public debt and EU vigilance will puncture its wildest trial balloons.
Ray-Ban heirs inherit wasteful Mediobanca feud 9 Aug 2022 Eyewear tycoon Leonardo Del Vecchio, who died in June, bought nearly 20% of the Italian bank as part of a fight with CEO Alberto Nagel. Making a return on the $1.5 bln stake will test his successors. Backing Nagel in his hunt for a target may be the more prudent choice.
Carmakers’ China decline is global warning 5 Aug 2022 Even as the People’s Republic loosens ownership restrictions on foreign manufacturers, Stellantis is closing its local Jeep factory. Domestic rivals took over 50% of the world’s largest car market in 2021. The worry for Western giants is that competition accelerates elsewhere.
Italy loafer buyout is a bet on a higher price tag 3 Aug 2022 Two decades after listing shoemaker Tod’s, founder Diego Della Valle is taking it private at the same 40 euro share price. His hope, with partner LVMH, may be that the group is worth more split up than his 1.4 bln euro bid implies. Weary investors may take the cheap offer anyway.