Italy

Vodafone’s Italy exit puts speed before valuation

28 Feb 2024

The UK telco looks poised to sell its hard-pressed local business to Swisscom for 8 bln euros in cash. The price tag is lower than a previous Iliad offer. But it’s a cleaner exit, and advances boss Margherita Della Valle’s goal of prompt M&A to make her company less sprawling.

The green agenda’s best shot at a revival

13 Feb 2024

Economic distress prompted by globalisation undermines support for the energy transition, climate change economist Valentina Bosetti tells The Exchange podcast. That matters as key US and EU elections approach. Using proceeds from carbon taxes to address inequality is paramount.

Europe’s wilting bourses get fresh cause to unite

12 Feb 2024

The likely de-listings of Italy’s Saras and Tod’s add to a wider exodus from euro zone stock exchanges. Part of the problem is a lack of new European companies to replace them. But Europe could also help itself if its equity market rules and trading were less fragmented.

A pinch of salt could unsettle electric-car order

7 Feb 2024

Carmakers Stellantis and BYD are betting on sodium-based batteries. The cells’ bulk and need for more frequent charging mean they may struggle to drive lithium tech off the road. But affordability and the prospect of loosening China’s grip on the industry will spur adoption.

UniCredit has ways to keep defying gravity

5 Feb 2024

The 50 bln euro bank pledged to match record 2023 net profit this year, and to keep showering investors with cash. CEO Andrea Orcel can use lower costs to offset higher loan losses and costlier deposits. If he can do so, and avoid flashy deals, his valuation can rise further.

Italy is fighting a rearguard battle on Stellantis

2 Feb 2024

Rome may invest in the $73 bln carmaker. Matching France’s 6% stake would cost 4 bln euros, hurting the government’s privatisation effort, and may spook Italian business. Saving jobs at the former Fiat is a natural concern, but Italy is no longer the group’s centre of gravity.

Iliad rebuff raises the bar for Vodafone in Italy

31 Jan 2024

The UK telco rejected its French rival’s 10 bln euro offer to merge operations in the tough southern European market, a fresh snub to Xavier Niel. CEO Margherita Della Valle needs to quickly plan another deal. Tie-ups with Telecom Italia, Swisscom or Wind all have complications.

Political push would unlock EU defence M&A spree

10 Jan 2024

Despite decades of gradual consolidation, Europe’s military industry is fragmented. The sound balance sheets of players like Thales or Leonardo make them fit to team up. A key merger hurdle would be removed if war at the borders pushes governments to align their defence policies.

EU hitches anti-Orbán plot to Draghi trial balloon

9 Jan 2024

European Council chief Charles Michel’s decision to leave early means Hungary’s Viktor Orbán could take charge of leaders’ meetings and represent them in high-profile summits. Doing whatever it takes to fill the void, even tapping Italy’s former PM for a short time, makes sense.

Permira risks tripping on rushed Golden Goose IPO

21 Dec 2023

The buyout shop may list the fast-growing Super-Star sneakers brand. With its track record tainted by bootmaker Dr. Martens’ poor post-listing performance, the investment firm has little room for error. Hurrying a share sale while the luxury segment faces headwinds seems unwise.

Vodafone may have to answer Iliad’s Italian call

18 Dec 2023

French tycoon Xavier Niel’s new bid for his UK rival’s business in Italy values it at a chunky 10.5 bln euros. That’s near what he offered last year despite falling earnings at Vodafone’s local arm. CEO Margherita Della Valle may struggle to find a more attractive exit strategy.

Stellantis will cruise with GM and Ford

18 Dec 2023

The maker of Jeeps and Opels run by Carlos Tavares is one of Europe’s lowest-valued carmakers. Yet it generates much of its income in the US, and boasts industry-leading profit margins. Keeping a single New York listing could see its valuation match Detroit rivals.

Pricey Campari cognac deal requires a steady hand

15 Dec 2023

Bob Kunze-Concewitz is paying $1.2 bln for French brandy house Courvoisier, the CEO’s biggest purchase yet. At 17 times last year’s EBITDA the price looks punchy while demand for cognac slows in the US and China. Lowering the Italian group's growing debt pile could be hard.

EU payments tie-up would build wider M&A defence

11 Dec 2023

Worldline’s market value has shrunk by 60% to $5 bln in a year, making it vulnerable to a takeover by US rivals. Teaming up with Italian peer Nexi is a worthy alternative. While sorting out the ownership structure looks tricky, the reward is greater regional clout and savings.

UniCredit G-SIB downgrade tests CEO animal spirits

1 Dec 2023

The Italian lender has lost its global too-big-to-fail designation. Yet the Bank of Italy wants UniCredit to hold even more capital than before. At least with over 10 bln euros of spare cash, Andrea Orcel has plenty of M&A firepower to buy his way back to the big league.

Vodafone CEO M&A job boosts Italy deal confidence

14 Nov 2023

After successfully offloading the telco’s UK and Spanish arms, Margherita Della Valle may sell all or part of its slowing Italian business. Rival Iliad is the top contender. But the division is now worth perhaps 2 bln euros less than what tycoon Xavier Niel offered last year.

IPO laggards’ race to the bottom misses the target

10 Nov 2023

Italy is siding with the UK in changing listing rules to stop firms moving to foreign venues. Greater voting power for founders may appeal to tech or family-owned companies. Yet Rome’s high debt and slow growth mean that, like in Brexit-battered Britain, the exodus may continue.

Telecom Italia rival plan has too many pitfalls

3 Nov 2023

An ex-executive and a fund say the telco could raise 16 bln euros by offloading a Brazilian unit and other assets to slash its debt pile. That would spare it from selling its prized network to KKR. Yet bagging such valuations while executing a multi-step project looks tricky.

Kering’s woes are tip of melting luxury iceberg

25 Oct 2023

Sales at Gucci’s $54 bln owner plunged 9% last quarter. Inflation suppressed less affluent shoppers’ appetite for its products and geopolitical risks are clouding its most coveted market - China. While a complex turnaround ups Kering’s challenge, bling rivals are also vulnerable.

European payments LBO would be rewarding but messy

18 Oct 2023

CVC may bid for Milan-listed Nexi, Bloomberg reported. A $16 bln buyout could earn handsome returns, even if the group just performs as analysts expect. But Nexi’s private-equity shareholders like Hellman & Friedman know this, forcing buyers to either cough up or bring them in.