Stock Exchange, the France-Italy axis of the CDP with Euronext makes Germany draw inspiration
All the latest news and scenarios after the move by Cassa Depositi e Prestiti which with Euronext presented an offer for Borsa Italiana to the London Stock Exchange Group
The board of directors of CDP and CDP Equity "have resolved to proceed jointly with Euronext to the presentation of a non-binding offer for Borsa Italiana in relation to the sale process initiated by the London Stock Exchange Group", reads a note from Cassa Depositi and loans (controlled by the Mef and invested in by the banking foundations), confirmed by a statement from Euronext specifying how “further announcements will be made at the appropriate time”.
It is therefore official, after many rumors: in the match with the London Stock Exchange, which holds 100% of the Italian stock exchange, the consortium formed by Cdp and Euronext officially enters, which manages the squares of Amsterdam, Brussels and Paris.
On August 21, they presented an offer for MTS, the electronic platform for the wholesale trading of European fixed-income bonds, while a second proposal should arrive in London next Monday, ad hoc for Borsa Spa.
CASH CASES ON THE FIELD IN ITALY AND FRANCE
The deadline was set for today, but the two companies asked for a few more days to carry out a more in-depth due diligence. In the event of victory, the top management of the stock exchange will be defined by Rome and the holding of the group will see CDP and the French Cassa govern on an equal footing.
THE STATE OF THE BAG
However, the issue is very complex, writes the Financial Times , explaining that the British stock exchange has the absolute ownership of Borsa Italiana, which holds 62% of the capital of MTS. The rest of the bond platform is owned by a group of banks including JPMorgan Chase, Citigroup and Intesa Sanpaolo. The LSE said there could be "potential benefits" from selling the assets together.
THE MOVES OF THE GOVERNMENT ACCORDING TO THE CITY
The Financial Times notes that "even if the Italian government has not yet declared its position on the future of Borsa Italiana and MTS, it has quickly moved to put together a potential offer", that is, this one formalized today by Cassa and Euronext which already last week they had sent the LSE an expression of interest in MTS. The support has not arrived clearly but the project certainly pleases the Italian Government.
WHAT THE FINANCIAL TIMES HAS WRITTEN
According to the Financial Times , while MTS and Borsa Italiana have political and strategic value for the government, they have commercial appeal for rival stock exchange groups. For example, Deutsche Boerse also warms up on the pitch, while Six Group, the manager of the Zurich Stock Exchange, according to the reconstruction of the Agi, has already prepared and intends to present shortly an offer for the Italian Stock Exchange, with a proposal that it would find its greatest strengths in an important level of planned investments and the ample autonomy that would be left to Borsa Italiana.
THE STATE OF THE ART
But the sale of Italian assets would come at a time when the pandemic has sharpened the interventionist instinct of the Italian government, recalls the FT: moreover, it points out, in recent months the government has strengthened the "golden power" that limits investments foreigners in sectors considered key to the national infrastructure, for example defense and telecommunications.
WHAT IS SAYING IN GERMANY
Germany attapirata. In the possible rush to buy Borsa Italiana, Deutsche Boerse appears to be disadvantaged compared to its competitor Euronext, writes the newspaper Handelsblatt , noting that, for Borsa Italiana, Euronext would submit a joint offer with the Cassa Depositi e Prestiti (CDP). Thanks to the cooperation with the Italian state bank, the French company would therefore be favored, because “the acquisitions of stock exchanges are traditionally highly political decisions”. Furthermore, for several Italian politicians, the best solution would be the “at least partial return to Italian hands” of the Milan Stock Exchange, 100 percent controlled by the London Stock Exchange Group. In the competition between Euronext and Deutsche Boerse for Borsa Italiana, it must also be considered that, according to sources informed on the facts, the French president Emmanuel Macron would be working for the victory of the first group. The chances of victory for Deutsche Boerse would therefore be "rather slim". However, the company can count on the chairman of its board of directors, Theodor Weimer, who for several years was chairman of HypoVereinsbank (Hvb), a subsidiary of Unicredit in Germany. According to “Handelsblatt”, Weimer knows in fact “how to move in Milan”, where Unicredit is based.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/borsa-lasse-francia-italia-delle-cdp-con-euronext-fa-attapirare-la-germania/ on Fri, 11 Sep 2020 14:40:34 +0000.