Italy

Pirelli boss turns de-risking into opportunity

19 Jun 2023

Rome has limited the power of the $5 bln tyremaker’s Chinese shareholder, without forcing it to sell. Pirelli and Italy get to de-risk China ties without burning too many bridges. But the real winner is CEO Marco Tronchetti Provera, who has again found a way to come out on top.

Moncler can inspire Golden Goose’s next step

15 Jun 2023

Skirting a pandemic and war, the maker of Super-Star sneakers doubled sales to 500 mln euros in three years, with rich margins. That’s where Remo Ruffini’s down jackets brand stood before its 2013 IPO. It may tempt owner Permira into a $3 bln sale, or Moncler into a purchase.

Berlusconi invented the entrepreneur as politician

12 Jun 2023

The tycoon-turned-Italian premier has died aged 86. He pioneered the use of wealth and media to achieve political power. Though his party is unlikely to survive his departure and his business empire is much weakened, his unorthodox methods spawned imitators across the West.

Yacht maker’s Italy pivot shows the way for Prada

8 Jun 2023

A year after its Hong Kong IPO, the Chinese-owned maker of boats loved by Hollywood stars is rushing to also list shares in Milan. The move offers scant valuation upside, but hedges geopolitical risks. If Ferretti can pull it off, luxury brand Prada will follow.

Pirelli CEO pivots from globalisation to trade war

5 Jun 2023

Marco Tronchetti Provera teamed up with a Chinese buyer to take the tyremaker private in 2015. Now Sinochem’s 37% stake poses business and governance risks for the $5 bln company. An appeal to Italy’s nationalist government may help the veteran industrialist maintain control.

Mediobanca chief’s 20-year race has one more lap

24 May 2023

For two decades, Alberto Nagel has fought market and boardroom crises while diversifying the Italian bank and booking fat returns. His new business plan lacks fireworks. But fear of destabilisation will prompt restless core investors to back the veteran banker for one more term.

Debt conundrum gives Italy weak hand in EU talks

18 May 2023

The pandemic and the war have taken the country’s indebtedness off investors’ radar. Yet high interest rates, slower growth and a budget deficit mean Rome will struggle to cut its fiscal burden. That makes it harder for PM Giorgia Meloni to ask for lenient European rules.

Telecom Italia is stuck in risky game of chicken

4 May 2023

The telco’s board must decide on rival bids from KKR and state investor CDP for its fixed-line grid. None comes close to the 31 bln euro price wanted by top investor Vivendi, but cash is needed to slash debt. If neither side blinks, the group could face a messy capital increase.

Italy’s Leonardo risks missing defence bonanza

3 May 2023

The $7 bln Italian electronics and helicopter group, 30%-owned by the state, trades at a discount to peers. Leonardo is not fully capitalising on rising EU military budgets after the Ukraine war. Investor support to add external expertise to the board is sorely needed.

Apollo’s Italy gambling IPO plays it suitably safe

21 Apr 2023

The US buyout fund is finalising a $3 bln listing of Italian betting firm Lottomatica. That will help slash the company’s debt and fund growth in Europe’s second-biggest gaming market. But the price discount suggests the IPO market remains a domain for the cautious and the needy.

Italy’s corporate power grab nears expiry date

18 Apr 2023

Premier Giorgia Meloni promised to rely on merit to pick new directors at state-backed firms like $54 bln Eni and $7 bln Leonardo. Instead, she’s stuffing boards with loyalists. Hedge fund efforts to push back at $64 bln green star Enel are a reminder the market also has a say.

Rome foot-dragging can help EU kick bad aid habits

18 Apr 2023

The Italian government is clashing with Brussels over 19 bln euros in pandemic loans. Missing milestones is bad policy for the biggest recipient of European aid. But the country’s pushback may have a silver lining if it prompts the bloc to be more flexible with money.

Pirelli will help read China investment tea leaves

4 Apr 2023

Sinochem has denied plans to ditch a 37% stake in the Italian tyremaker. But Beijing’s pressure on state-controlled firms to boost shareholder value and dump non-core assets may lead to a sale. Pirelli’s fate will have a bearing on China’s $1 trln overseas portfolio.

Ferrari’s green journey takes surprise turn

30 Mar 2023

Europe’s plan to support carbon-neutral fuels is good news for the $50 bln luxury carmaker, CEO Benedetto Vigna says on the Exchange podcast. It will allow the group to flog the roaring engines that made its fortune. Electric cars remain a goal, but self-driving Ferraris are not.

Santander’s new plan is a make-or-breakup moment

28 Feb 2023

Chair Ana Botín wants to forge deeper links between the disparate bits of her 60-bln-euro bank, including by using common IT systems. If it works, and higher returns follow, the bank should trade at more than the sum of its parts. If not, it will be hard to resist selling assets.

Stellantis has well-padded airbag for car crunch

22 Feb 2023

The Jeep maker’s operating income hit record levels in 2022, but it faces weaker demand from punters and rising competition. Still, CEO Carlos Tavares’s cost cutting and low exposure to China give cause for positivity. Those pluses aren’t reflected in the Stellantis share price.

Telecom Italia breakup can please all its masters

15 Feb 2023

The sickly telco needs to cut its 25.4 bln euro debt pile. Selling its fixed-line grid to KKR offers a fix, provided the government gets a stake in the strategic asset. For major investor Vivendi, the upside would be a chance to sell Telecom Italia’s revamped service business.

Debt is poor fix for Italian soccer’s malaise

8 Feb 2023

Having rejected private equity suitors, Italy’s top football league may turn to Wall Street banks to borrow up to 1 bln euros. The cash may give Serie A’s ailing TV rights business extra time. But without a governance shake-up, gorging on debt would extend its losing streak.

KKR tries its luck again with Telecom Italia bid

2 Feb 2023

After two failed attempts, the buyout firm is seeking control of the telco’s network, valued at 20 bln euros. A sale would solve the group’s persistent debt headache. To overcome resistance from major shareholder Vivendi, KKR will need backing from the government in Rome.

UniCredit’s share-price surge has further to run

31 Jan 2023

Boss Andrea Orcel wants to hand more than 5 bln euros to investors through dividends and buybacks, after reporting stellar 2022 earnings. Further Russia writedowns are a risk, but the bank’s bottom line looks solid. A valuation of just over half tangible book value looks too low.