Italy is preparing to cancel its controversial membership in China’s Belt and Road infrastructure initiative, engaging in an elaborate diplomatic dance to avoid angering Beijing and triggering retaliation against Italian businesses, the Wall Street Journal reported. Italian Foreign Minister Antonio Tajani held talks in Beijing on Sunday and Monday to facilitate as smooth an exit as possible from the initiative while laying the groundwork for alternative economic deals with China.
Read more
Prime Minister Giorgia Meloni’s coalition is considering selling minority stakes in selected state-owned companies to boost Italy’s public finances, Bloomberg News reported. Government ministers are evaluating the disposal of some assets, including a stake in the state railway, while still retaining control over the businesses, according to people familiar with the discussions, Bloomberg News reported.
Read more
Prime Minister Giorgia Meloni on Wednesday defended the decision to impose a surprise windfall tax on profits at Italy's banks after the government watered down the plan following a market rout, Reuters reported. The economy ministry clarified late on Tuesday that the 40% windfall tax, a one-off measure which targets gains from banks' higher interest rates, would not amount to more than 0.1% of their total assets.
Read more
Italian bank stocks plunged Tuesday after the Cabinet approved a proposal to apply a 40% tax on some bank profits this year to help consumers and businesses cope with higher borrowing costs, the Associated Press reported. Transport Minister Matteo Salvini announced the tax at a Monday evening press conference, saying it was a measure of “social equity” to make up for a series of interest rate hikes from the European Central Bank.
Read more
Italy's biggest telecoms company Telecom Italia (TIM) said on Friday it received two new offers for its landline grid, as companies bid to resolve the impasse over the asset's sale process, Reuters reported. U.S. fund KKR and separately a rival consortium comprising state lender CDP and Australian fund Macquarie submitted bids for Telecom Italia's network, according to a statement. Debt-crippled TIM is seeking improved offers for its most valuable asset after having assessed as not yet adequate the proposals received in May.
Read more
Italy's government has no need to directly invest in Stellantis as the carmaker is doing well, Economy Minister Giancarlo Giorgetti suggested on Monday, echoing similar comments made last week by the group's chairman, Reuters reported. Asked by reporters whether Rome should take a stake in Stellantis to have more say in its management, Giorgetti said the company's CEO Carlos Tavares had demonstrated he can pursue the highest financial results for the group.
Read more
German airline Lufthansa on Thursday signed a deal with the Italian government for a 41-percent minority share in the long-struggling ITA Airways, formerly Alitalia, the Associated Press reported. The deal calls for investments of 575 million euros in capital increases, 325 million euros from Lufthansa and the rest from the Italian Finance Ministry, providing capital for growth. Lufthansa will also have the option of buying the remaining shares at a later date.
Investment firm Permira has acquired the majority of Gruppo Florence, in a deal which a source close to the matter said valued the hub of Italian luxury clothing and leather goods manufacturers at more than 1 billion euros ($1.1 billion), Reuters reported. The deal announced on Thursday highlights a trend among private-equity funds, which after running out of big brands to buy, have locked on to the challenges of the luxury industry's supply chain and turned to a "buy and build" strategy.
Mediobanca on Monday said it has agreed to sell its bad loan acquisition unit for 100 million euros ($110 million), as Italy's leading investment bank focuses on capital-light businesses ahead of unveiling a new three-year strategy, Reuters reported. Banca IFIS agreed to buy Revalea, a unit Mediobanca set up last year by separating purchasing from management of bad debts. Mediobanca will continue to operate the latter through its MBCredit Solutions unit. It was the second deal announced by Mediobanca in days as it prepares to present a new business plan through 2026 on Wednesday.
Italy won’t lose its investment-grade status at Moody’s Investors Service for now after the company chose not to issue a new assessment on one of Europe’s most indebted countries, Bloomberg News reported. In a boost to Premier Giorgia Meloni’s government, a possible announcement scheduled for Friday didn’t materialize, as already happened in September last year. Moody’s currently assesses Italy at Baa1, just one notch above junk, with a negative outlook. A spokesperson said there’s no plan to publish a report on Friday.
Read more