Latest news with #GiuseppeFonte
Yahoo
4 days ago
- Automotive
- Yahoo
Italy resisting calls from Pirelli to tighten curbs on Chinese shareholder, sources say
By Giuseppe Fonte and Giulio Piovaccari ROME (Reuters) -The Italian government is resisting calls from Pirelli's executive vice-chairman Marco Tronchetti Provera to tighten curbs imposed on the tyremaker's Chinese investor, sources said. Chinese state group Sinochem is Pirelli's largest investor with a 37% stake, while Tronchetti Provera's Camfin vehicle holds a 27.3% shareholding. Tronchetti Provera has been the company's top boss for more than three decades. Pirelli itself and Camfin are at odds with Sinochem, claiming that its substantial holding poses a risk to Pirelli's ambitions to expand its business in the United States. Washington is cracking down on Chinese technology in the automotive industry, by banning key software and hardware from Chinese-controlled companies in connected vehicles on U.S. roads. Tronchetti Provera is lobbying the government to take further action to limit the Chinese influence at Pirelli, two sources familiar with the matter said, by strengthening the restrictions that Rome imposed on Sinochem in 2023 through the golden power rules aimed at protecting strategic assets. However, Prime Minister Giorgia Meloni's administration has so far rebuffed these calls, the sources added, asking not to be named due to the sensitivity of the matter. Rome's cautious stance partly stems from concerns it would rely excessively on its golden powers, one of the sources said, at a time when Italy faces a legal dispute with UniCredit over the way it uses the tool in vetting banking deals. All parties declined to comment. The government, which has ruled that Pirelli must not be subject to instructions from the Chinese investor, last November launched an investigation to check whether the presence of Sinochem executives on the tyremaker's board was in breach of these curbs. The inquiry is under way and before considering a harder stance on Sinochem, the government will at least check for violations of existing restrictions, the second source said. FAR APART Emanuele Orsini, the head of Italian business lobby Confindustria of which Pirelli is a leading member, called on the government to defend the autonomy of the Italian group. "Part of Pirelli's shareholding, which is now in the hands of the Chinese government, is not approving the balance sheets and is therefore jamming up Pirelli, so I think something has to be done," Orsini said on Wednesday. In previous remarks on Tuesday, Orsini argued Sinochem should cut its stake in Formula One tyre supplier Pirelli to below 25%. Talks over governance adjustments have so far failed, with Camfin and Sinochem remaining far apart. Last month, the Chinese company described a proposal put forward by Pirelli to solve problems as "seriously unfair", while Camfin said that Sinochem's approach could lead to breaking the shareholder pact still in place between the two largest investors. Should the agreement be dropped, Sinochem and Camfin would be in a position to present separate slates at Pirelli's shareholders' meeting (AGM) next year, with one of them potentially taking full control of Pirelli's board. Two separate sources told Reuters that Tronchetti Provera was relying on further government support through golden powers in the event of a final clash with Sinochem at the AGM. Pirelli has been posting good results despite ongoing struggles in the auto industry. Its net profit rose 27% in the first quarter, while revenues were up 4%. Sign in to access your portfolio
Yahoo
4 days ago
- Automotive
- Yahoo
Italy resisting calls from Pirelli to tighten curbs on Chinese shareholder, sources say
By Giuseppe Fonte and Giulio Piovaccari ROME (Reuters) -The Italian government is resisting calls from Pirelli's executive vice-chairman Marco Tronchetti Provera to tighten curbs imposed on the tyremaker's Chinese investor, sources said. Chinese state group Sinochem is Pirelli's largest investor with a 37% stake, while Tronchetti Provera's Camfin vehicle holds a 27.3% shareholding. Tronchetti Provera has been the company's top boss for more than three decades. Pirelli itself and Camfin are at odds with Sinochem, claiming that its substantial holding poses a risk to Pirelli's ambitions to expand its business in the United States. Washington is cracking down on Chinese technology in the automotive industry, by banning key software and hardware from Chinese-controlled companies in connected vehicles on U.S. roads. Tronchetti Provera is lobbying the government to take further action to limit the Chinese influence at Pirelli, two sources familiar with the matter said, by strengthening the restrictions that Rome imposed on Sinochem in 2023 through the golden power rules aimed at protecting strategic assets. However, Prime Minister Giorgia Meloni's administration has so far rebuffed these calls, the sources added, asking not to be named due to the sensitivity of the matter. Rome's cautious stance partly stems from concerns it would rely excessively on its golden powers, one of the sources said, at a time when Italy faces a legal dispute with UniCredit over the way it uses the tool in vetting banking deals. All parties declined to comment. The government, which has ruled that Pirelli must not be subject to instructions from the Chinese investor, last November launched an investigation to check whether the presence of Sinochem executives on the tyremaker's board was in breach of these curbs. The inquiry is under way and before considering a harder stance on Sinochem, the government will at least check for violations of existing restrictions, the second source said. FAR APART Emanuele Orsini, the head of Italian business lobby Confindustria of which Pirelli is a leading member, called on the government to defend the autonomy of the Italian group. "Part of Pirelli's shareholding, which is now in the hands of the Chinese government, is not approving the balance sheets and is therefore jamming up Pirelli, so I think something has to be done," Orsini said on Wednesday. In previous remarks on Tuesday, Orsini argued Sinochem should cut its stake in Formula One tyre supplier Pirelli to below 25%. Talks over governance adjustments have so far failed, with Camfin and Sinochem remaining far apart. Last month, the Chinese company described a proposal put forward by Pirelli to solve problems as "seriously unfair", while Camfin said that Sinochem's approach could lead to breaking the shareholder pact still in place between the two largest investors. Should the agreement be dropped, Sinochem and Camfin would be in a position to present separate slates at Pirelli's shareholders' meeting (AGM) next year, with one of them potentially taking full control of Pirelli's board. Two separate sources told Reuters that Tronchetti Provera was relying on further government support through golden powers in the event of a final clash with Sinochem at the AGM. Pirelli has been posting good results despite ongoing struggles in the auto industry. Its net profit rose 27% in the first quarter, while revenues were up 4%.
Yahoo
28-05-2025
- Business
- Yahoo
Gulf firms approach Italy to buy UniCredit's Russia business, document shows
By Giuseppe Fonte ROME (Reuters) -Three companies based in the United Arab Emirates have approached the Italian Treasury with a proposal to buy the Russian operations of UniCredit at a steep discount, a document seen by Reuters showed. UniCredit is under pressure both from the European Central Bank and Italy's government to quit Russia, where it runs a commercial lender. It has so far resisted leaving at a loss, insisting instead on a gradual disengagement. This month it targeted ending its Russian retail business by mid-2026. Under the plan, Dubai-based investment firms Asas Capital and Mada Capital would set up a special purpose vehicle and team up with Inweasta, an advisory and investment firm which already operates in Russia, the document showed. The Gulf-based investors are relatively small and little-known. Mada manages the equivalent of $639 million in assets and focuses on regional markets. Asas Capital was founded in Dubai in 2009 and says it focuses on capital markets, private equity, advisory and entrepreneurship. Unspecified Italian partners would also take part in the deal, with the task of securing approvals from the ECB, Italy and European Union and U.S. regulators. "All parties involved in the transaction are not subject to sanctions and are in full compliance with the applicable sanctions regime," the document said. "The source of funds originates from the United Arab Emirates," it added. News of the proposal was first reported by Italian daily Il Messaggero. Asas, Mada and Inweasta did not immediately reply to requests for comment. UniCredit declined to comment. Inweasta specialises among other things in cross-border disputes resolution. Last year it bought Czech group PPF's Russian PPF Life Insurance LLC business, securing approval from the central bank and the Foreign Investment Subcommittee. "Inweasta facilitates obtaining all necessary regulatory approvals and transaction documentation in Russia," the document said. A presidential decree and a green light from the Bank of Russia are necessary for Western companies to dispose of Russian assets. The UAE consortium is proposing the acquisition of UniCredit's Russian business at a 60% discount to market value, the document showed. UniCredit has been steadily reducing its Russian operations though it has challenged the stricter exit deadlines demanded by the European Central Bank through the European General Court. The Italian government has also asked UniCredit to exit Russia by early 2026 as part of conditions to authorise its buyout offer for smaller domestic rival Banco BPM. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
21-05-2025
- Business
- Yahoo
Italy's CDP, Macquarie at odds over future of loss-making Open Fiber, sources say
By Elvira Pollina and Giuseppe Fonte MILAN (Reuters) -Italian state lender CDP and its partner Macquarie are at odds over the future of their loss-making fibre network operator Open Fiber, sources familiar with the matter told Reuters. The standoff risks slowing down efforts by Italy's conservative government to combine Open Fiber with larger rival FiberCop, the network unit Telecom Italia sold last year to a pool of investors comprising KKR and Italy's Treasury. CDP, which owns 60% of Open Fiber, is keen to merge the operator's assets with those of FiberCop to create a wholesale-only telecommunications network provider under state control. But in the view of Australian fund Macquarie, Open Fiber needs to spin-off fibre assets in the most densely populated and profitable areas to ensure a smooth antitrust review for any combination with FiberCop, one of the sources said. Macquarie, which spent 2.12 billion euros ($2.4 billion) to buy a 40% stake in Open Fiber in 2021, would be ready to take over those assets, the same source said. Macquarie declined to comment. However, CDP is not willing to hand over those areas as they represent Open Fiber's most valuable assets and are key to ensuring that the company is valued fairly in any deal with FiberCop, according to a second source. Industry experts said those areas could be valued at 4-6 billion euros, including debt. The structure of any potential deal needs to be negotiated yet and may emerge in a one-year timeframe, the second source said. Any potential combination between FiberCop and Open Fiber needs to be cleared by European Union antitrust authorities. CDP is confident Brussels could demand the sale of only a portion of Open Fiber's network assets in the most densely populated areas to preserve competition, the second source said. FiberCop was valued at 18.8 billion euros in the KKR deal, when including some 9 billion euro in debts. CDP declined to comment. Open Fiber, which Italy's government tasked with rolling out fibre optic cables across the country almost a decade ago, posted a 364 million euro loss last year and forecast reaching a positive cash flow in 2028 at the latest. ($1 = 0.8817 euros) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-04-2025
- Business
- Yahoo
U.S. policy on stablecoins more dangerous than tariffs, Italian minister says
By Giuseppe Fonte ROME (Reuters) - U.S. policy on stablecoins offers European citizens an attractive payment method for cross-border transactions which should trigger more concern than trade tariffs, Italy's economy minister said on Tuesday. Addressing an event in Milan on asset management, Giancarlo Giorgetti said European Union authorities should adopt further steps to boost the status of the euro as an international reference currency and complained about the fragmentation of the EU's payment industry. U.S. President Donald Trump has pledged to overhaul rules on cryptocurrencies and reverse a crackdown on the sector that took place under his predecessor Joe Biden. Dollar-pegged stablecoins, which are a type of cryptocurrencies designed to maintain a constant value, have ballooned in recent years. They now act as a key cog in the multi-trillion dollar crypto trading industry, helping move funds between different cryptocurrencies or into regular cash. "The general focus these days is on the impact of trade tariffs. However, even more dangerous is the new U.S. policy on cryptocurrencies and in particular that on dollar-denominated stablecoins," Giorgetti said. The minister argued that stablecoins would give savers the opportunity to invest in risk-free assets and a widely accepted means of payment for cross-border transactions, without any need for a banking account with U.S. banks. "It is therefore easy to foresee their attractiveness for citizens of economies with unstable currencies, but its appeal for people of the euro zone should not be underestimated," Giorgetti said. To promote European sovereignty in payments and protect the role of fiat currencies against the spread of stablecoins, the European Central Bank (ECB) is working on the so-called digital euro. The project envisages EU residents having digital euro accounts with the ECB which they can use for online payments or in shop, or to exchange money with friends thanks to the ECB partnering with EU-based payment services providers. "The digital euro will be essential to minimise the need for European citizens to resort to foreign solutions to access such a basic service as payment," Giorgetti said. European banks have expressed concerns that a digital euro would empty their coffers as customers transfer some of their cash to the safety of an ECB-guaranteed wallet. Sign in to access your portfolio
