ITALIAN STOCK EXCHANGE: EITHER CDP BUY IT ALL (better the Treasury ..) OR FOREIGNERS KEEP IT

19 August 20204 years ago babelfish

Among the increasingly insistent rumors, CDP Euronext is ready to offer a joint offer for the acquisition of the Borsa Italiana operator MTS, which has been owned by the London Stock Exchange Group since 2007. In an ever-changing scenario, Euronext could become the new owner of Borsa Italiana, while Cassa Depositi e Prestiti could obtain a stake in Euronext, around 8% according to Bloomberg. Intesa would also come into play at this stage by purchasing a Euronext share of around 2%. The news was released by Bloomberg.

More will be known shortly. In fact, LSE would have asked for the first offers by 21 August in order to receive the non-binding offers in September and move on to the binding offers in October. All to conclude the Refinitiv transaction, of great interest to LSE, by the end of 2020 or early 2021.

Following these timelines, therefore, Cdp and the Parisian Euronext could deposit by Friday a joint offer for the acquisition of Mts (the wholesale market for government bonds, ed), but perhaps integrating the entire Italian Stock Exchange for a value of 3-4 billion requested by LSE. . Then there is talk of the presence of possible other competing offers from Deutsche Borsa or Zurich.

Having presented the situation, I will tell you clearly what I think: if the offer is this, it is better not to put a euro, indeed not even a lira.

The reasons are simple and within the reach of all readers:

if the purchase, which is very expensive among other things (the Draghi law sold Borsa Italiana to private individuals for 14 million euros in 1997), is at these conditions useless. Control of MTS and Borsa Italiana would be in the hands of the French of Euronext. to add insult to injury with 8% sold to CDP for consideration, it is practically the Italian savers who finance the purchase of the Italian Stock Exchange by the French. A situation
It makes no sense to have a minority or strong minority stake in a company which in turn owns Borsa Italiana. If Borsa Italiana is strategic, as politicians say, then it is necessary to have control over it, not 8%. Otherwise, if it is only a matter of "Business", it is treated as such without cloaking it in strategic purposes that it cannot have;
rather than throwing away 1.8 or 2 billion euros in a minority stake in the Italian Stock Exchange, then it is better to invest them in a new exchange, reserved for small caps, given that the solutions studied by LSE have not been very successful.

As always in Italy when a move is wrong it is made when few are able to react. At this point, we hope that some obstacle will be placed sideways and prevent the realization of what is, to all intents and purposes, a sensational error paid for with public money.

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The article BORSA ITALIANA: Either CDP BUY IT ALL (better the Treasury ..) OR FOREIGNERS KEEP IT, comes from ScenariEconomici.it .

This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/borsa-italiana-o-la-compra-tutta-cdp-meglio-il-tesoro-o-che-se-la-tengano-gli-stranieri/ on Wed, 19 Aug 2020 16:46:13 +0000.