VW tilt at Fiat would be a bad idea 17 Jul 2014 Shares in Fiat are climbing on a German media report of a possible bid from Volkswagen for all or part of the $13 bln Italian carmaker. VW has enough on its plate. It’s hard to see the benefit of adopting Fiat’s problems. The logic of Fiat selling its Chrysler unit is weak too.
Lottery firm buys pricey $5 bln ticket out of Italy 16 Jul 2014 GTECH is buying U.S. slot-machine maker IGT for $4.7 bln in cash and stock. That’s a bold price given IGT’s competitive challenges. The buyer is talking tough on synergies. Still, this cuts GTECH’s reliance on Italy - and could also bring down its tax bills.
Rob Cox: Capital crisis making Italy SpA stronger 10 Jul 2014 Italian capitalism is undergoing Darwinian selection. Companies can no longer rely on the state, age-old shareholder pacts or even Mediobanca for capital. Firms are being forced to adapt to the rules of global finance to avoid extinction. The next generation looks fit to prosper.
Renzi can show market bona fides with Eni shakeup 9 Jul 2014 Italy’s oil giant trades at a discount to peers partly due to project delays, geopolitical turmoil and downstream difficulties. Giving Eni more freedom to run itself for shareholders, and maybe sell its stake in oil-services firm Saipem, would best serve the state’s 30 pct interest.
Fincantieri slide augurs ill for Italian selloffs 7 Jul 2014 The shipbuilder’s shares are below last week’s float price. Given the sizeable retail support for the offering, that is unhelpful for other potential stock market issues. That includes family firms and the state’s privatisation plan. The new government needs more market savvy.
Hugo Dixon: Matteo Renzi is on a roll 7 Jul 2014 The Italian prime minister is a brilliant politician. His youthful dynamism has bought him time with his people, the markets and the EU to carry out the immense job of reforming Italy. But he has yet to show he can execute. He now needs to, because even his time will run out.
Renzi picks wrong energy policy for right reasons 30 Jun 2014 The Italian prime minister has a Machiavellian streak. Matteo Renzi’s move to cut renewable energy incentives could spook investors, but it may help his reform agenda. He now needs to prove that the end justifies the means.
Etihad’s Alitalia grab not as loony as it looks 2 Jun 2014 After spending another 300 mln euros on struggling Air Berlin, the Abu Dhabi carrier gives Italy’s stricken flag carrier another lease of life. Acquiring yet another minority stake in a loss-making peer does make sense. And Etihad buys much-needed political clout in Europe.
Italy’s lesson for Europe: do your homework 27 May 2014 Matteo Renzi’s European election triumph will supercharge his reforms. The solid showing for a mainline party, despite a sickly economy, demonstrates that a strong domestic politician can be more appealing than euro-bashing. Hollande and Cameron could learn from the Italian PM.
MPS rights issue rethink could have silver lining 15 Apr 2014 The Italian lender’s cash call may raise more than the 3 bln euros originally intended to meet regulatory hurdles. Monte Paschi’s shares have taken a hammering. But in the light of recent peripheral bank capital hikes, MPS could find the money and end up stronger.
Renzi corporate rejig blends change and continuity 15 Apr 2014 Italy’s premier has pleased markets and voters with his choice of new managers for state-controlled companies. Female chairs reflect the mood for change, while promoting internal CEOs elevates industrial logic over political meddling. Renzi has avoided a potential banana skin.
Banks swap rewards for risk on public deals 9 Apr 2014 Deutsche Bank and UBS are now loath to offer long-dated swaps to municipalities. New capital rules make the business less attractive. But after legal tussles and bad publicity in Milan and Detroit, bankers are turning away business on grounds of reputational risk.
Renzi’s Senate reform could prove mission possible 8 Apr 2014 The Italian premier hopes that turkeys will vote for Christmas, and the Senate will agree to be shrunk with limited powers. That would make governments stronger. Renzi has two big sticks: the threat of a referendum, and the populist pressure of comedian Beppe Grillo’s party.
Vatican takes a stab at banking purity 7 Apr 2014 Pope Francis has decided not to close the Catholic Church’s own special bank. Instead, the IOR will be pruned back, but will continue to serve some of the special needs of the original multinational organisation. A scandalous institution might yet become a model of probity.
Shrinking margins take bling off Prada valuation 3 Apr 2014 Shares in the Italian fashion house fell 8 percent after costs rose faster than revenue in 2013. Weak sales from its Miu Miu brand added to the gloom. The selloff scuffs Prada’s premium rating relative to rival luxury brands. But there may be further markdowns to come.
Telecom Italia renewal has further to go 1 Apr 2014 Under pressure from a dissident investor, Italy’s main phone company will soon get a strong, independent board. That’s good for outside shareholders. But the intentions of key stakeholder Telefonica remain opaque. TI’s undemocratic voting system needs an overhaul too.
Monte Paschi swaps tail risk for bid speculation 31 Mar 2014 The foundation that was the Italian bank’s largest shareholder has sold yet more stock, this time to BTG Pactual and another Latin American investor. With all three supporting MPS’ upcoming rights issue, higher returns – or a bid – are replacing the threat of nationalisation.
Intesa’s spring cleaning heralds return to health 28 Mar 2014 Italy’s largest retail bank is taking a massive 6.8 bln euro goodwill hit on the half-dozen mergers that created it. With a new bad bank, that prepares it for the ECB’s stress tests. But the pledge of 10 bln euros in cash payouts is the best sign Intesa is out of convalescence.
Roman corporate governance purge could backfire 26 Mar 2014 Italy wants state-controlled companies to eject board members who are under criminal investigation for financial crimes. Probity is laudable, but this plan could hurt the innocent and create harmful uncertainty. Stronger boards and tougher penalties would be a better way forward.
Euro zone periphery trade is running out of gas 20 Mar 2014 Investors keen on a recovery story have been piling into assets in Spain, Italy, Portugal and Greece. Some periphery assets now look expensive. Further gains need two conditions to be satisfied – politicians enacting more reforms and companies growing profits.