Telecom Italia will keep bankers busy in 2022 29 Nov 2021 KKR’s $12 bln proposal has put the telco in play. The process is likely to involve multiple bidders and key actors including French shareholder Vivendi and the Italian government. As with Telecom Italia’s 1999 leveraged takeover, it’s a boon for bankers, lawyers and consultants.
Review: House of Gucci’s broken family capitalism 26 Nov 2021 A sprawling dynasty can lead to corporate disaster. Ridley Scott’s star-studded movie is a kaleidoscopic portrait of the infighting that saw the Gucci family lose control of their namesake brand. Stepping aside at the right time can make all the difference.
Cox: Telecom Italia and the curse of the euro era 25 Nov 2021 The 1999 buyout of Italy’s phone monopoly baptised Europe’s new single currency. The years since have been terrible for the company and its many trophy-seeking owners, who have lost some $23 bln. Here’s why the latest offer from private equity firm KKR offers hope for redemption.
Viewsroom: Barbarians invade Rome; Biden’s Fed 25 Nov 2021 The board of Italy’s phone monopoly has a golden opportunity to end years of creeping control, poor governance and dismal performance by considering a sale following the unsolicited $12 bln bid from KKR. And Gina Chon explains why Jay Powell has the hardest job in finance.
KKR has wiggle room to sweeten Telecom Italia bid 24 Nov 2021 The U.S. private equity group will need to raise its 33 bln euro offer for the Italian telco to win over investors Vivendi and CDP. It’s already the largest buyout in European history. But KKR has ways to fund the deal without overloading Telecom Italia with debt.
KKR bid is next act in Telecom Italia soap opera 22 Nov 2021 The buyout group wants to take the phone operator private for 10.8 bln euros. Offering less than the pre-pandemic share price looks opportunistic. Yet the 47% premium will tempt all but top investor Vivendi, which is nursing hefty losses. The board should start a conversation.
Prada’s new look merits fashion league promotion 18 Nov 2021 After years of drift, the $18 bln Italian brand has got a grip on its retail chain, axed discounts and rejuvenated its image. That should help it hit a 4.5 bln euro sales target and double its margins. For investors, the catch-up with snazzier rivals is something worth having.
Ariston IPO is enticing play on green energy wave 17 Nov 2021 The family-owned maker of heat pumps and water heaters is going public in Milan at a valuation of up to 4 bln euros. With demand for energy-efficient heating systems set to boom, it’s in a sweet spot. A discount to rivals A.O. Smith and NIBE Industrier should help inflate demand.
Agnelli insurance bonus is asset-inflation victim 29 Oct 2021 The Italian clan revived a $9 bln sale of PartnerRe to Covéa at the same price as last year’s failed deal. But the French group is paying a lower premium for the reinsurer’s assets. Meanwhile, pumped-up valuations of potential targets mean the Agnellis’ windfall will go less far.
Viewsroom: Soccer, steel and the COP; Andrea Orcel 28 Oct 2021 As world leaders and corporate chieftains converge on Glasgow for the UN climate powwow, Rob Cox and George Hay talk about one European steel town's struggle to transition from hydrocarbons to a green new era. And Lisa Jucca discusses the latest on UniCredit’s M&A options.
Stellantis has chance to close in on Volkswagen 28 Oct 2021 Hit by a chip shortage, quarterly sales at the Jeep maker fell harder than at the $140 bln German giant. But its operating margin is better, and boss Carlos Tavares is tackling a weakness in battery electric cars. That should help Stellantis narrow a valuation gap with its rival.
Moving carbon goalposts will be a wrenching burden 27 Oct 2021 The work required to make a net-zero transition is far harder than regularly announced political targets suggest. A soccer team in Taranto, Italy, home to Europe’s largest and most notorious steel mill, offers a glimpse into the economic struggles facing cities the world over.
Price of Andrea Orcel’s next deal just went up 25 Oct 2021 Rome balked at the UniCredit CEO’s request to inject 6 bln euros into state-owned Monte dei Paschi, ending M&A talks. The banker could still use a quarry to propel UniCredit shares. He can consider smaller Banco BPM, revisit MPS or look abroad. The best Plan B won’t be cheap.
Mario Draghi can play hardball with Andrea Orcel 21 Oct 2021 UniCredit’s boss wants the Italian premier to inject 7 bln euros into bailed-out bank MPS before he buys it. The state needs to sell its stake to meet EU rules, but taxpayers may balk at another large handout. Seeking an extension from Brussels may work to Rome’s advantage.
Time to end Richemont’s online fashion drag 18 Oct 2021 The Cartier owner may sell its e-commerce business YNAP just three years after taking it over. A deal with Farfetch or other rivals might reap at most 3.6 bln euros. Yet, by cutting exposure to a lossmaking unit, boss Johann Rupert would smarten up his company’s dowdy valuation.
Cox: Arrivederci Alitalia, you won’t be missed 14 Oct 2021 After 74 years, Italy’s once-glamorous national carrier disappears for good tonight. The airline had become the butt of bad jokes and a dent to Italian pride. Poor management was a factor in its demise. But there are reasons to celebrate Alitalia’s end, and ITA’s new beginning.
Eni’s green listing shows appropriate restraint 12 Oct 2021 The $50 bln Italian oil major’s renewables IPO may value it at 10 bln euros. Recent efforts by rivals don’t inspire confidence, but Eni’s offer blends a nascent green power business with its more established energy retail arm. That should get takers at a more modest valuation.
Road to COP: Italy’s ecological transition chief 28 Sep 2021 Prime Minister Mario Draghi picked Roberto Cingolani, a trained physicist, from the private sector to lead the country’s mega-ministry combining environment and energy. As Milan hosts the warmup to the COP26, Cingolani discusses Italy’s role in the global decarbonization fight.
Italy will be first to light up Europe’s weed biz 22 Sep 2021 A nationwide plebiscite will seek to legalise cannabis. Taxing recreational dope may add some 6 bln euros to strained state coffers, and production for medical and other uses will also rise. As the U.S. experience shows, if Rome crosses the sticky line, neighbours will follow.
Generali needs stable owners more than a new boss 14 Sep 2021 Under Philippe Donnet, the $33 bln Italian insurer’s stock price has kept up with Allianz and bested Axa, although he failed to clinch big acquisitions. Grumbling old Italian billionaires in its shareholder roster, fighting with rival owner Mediobanca, are its bigger weakness.