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Companies potentially affected by the elections in Italy


Here is a list of businesses that could be affected by the outcome of the election.

BANKS

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The fall of Prime Minister Mario Draghi’s government weighed on Italian banking stocks.

Exposed to rising yields on Italian debt through their large sovereign bond holdings as well as through their cost of funding, banks are also vulnerable to a deterioration in the economic outlook.

The change of government and Meloni’s calls to review Italy’s national recovery plan could threaten Italy’s ability to meet the commitments to which the European Union’s post-pandemic funds are linked.

INTESA SANPAOLO

Italy’s leading bank is the second largest holder of Italian debt after the European Central Bank. CEO Carlo Messina has repeatedly called on Rome to use its high level of private wealth and public assets to support its debt, thus achieving “financial independence”.

UNICREDIT

A new government could offer a fresh start to CEO Andrea Orcel, who pulled out of the plan to acquire Monte dei Paschi di Siena, which has damaged relations with Prime Minister Draghi’s government.

MONTE DEI PASCHI

The formation of the new government will serve as the backdrop to the public bank’s final fundraising appeal in October, which is hitting the markets at a tough time.

The new government will also face a commitment to reprivatise the bank, after the previous executive landed a one-year extension of a chance by the end of 2021 to reduce Rome’s 64% stake in the bank.

ENERGY/UTILITIES

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Italy has introduced measures to tax energy companies to help fund programs to protect businesses and families from soaring electricity costs. The right-wing coalition’s manifesto backs the proposal for a Europe-wide energy price cap, an idea put forward by the current administration that still lacks widespread support in Europe.

The right also wants to negotiate with Brussels changes to Italy’s recovery plan to increase spending to tackle the energy crisis and boost investment in nuclear energy.

ENEL, ENI Meloni ruled out taking full control of national energy groups Eni and Enel, as the French government did with EDF, while reaffirming that it is the government’s duty to protect assets of national importance and avoid foreign takeovers.

The new government will decide whether or not to renew the contracts of the CEOs of Enel and Eni, who are both due to arrive next year. SNAM The state-controlled gas network operator purchased a floating LNG regasification terminal (FSRU) in June to support efforts to find alternative sources of gas supply. Snam wants to start mooring work at the Piombino terminal in Tuscany by the end of October. It aims to connect it to the gas network by next spring in order to increase LNG imports.

The new government could decide to slow down or speed up the infrastructure which is already meeting resistance from local authorities.

DEFENSE

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Meloni has repeatedly come out in favor of the Western alliance over Ukraine, promising to increase defense spending.

LEONARDO

CEO Alessandro Profumo said on July 28 that the public defense group was working on a deal to sell its OTO Melara gun-making unit and its Wass naval torpedo unit, but needed a new Rome government to be able to finalize any potential agreement.

Like the CEOs of Eni and Enel, Profumo’s mandate is up for renewal next year.

TELECOM

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TELECOM ITALIA (TIM)

The Brothers in Italy have demanded a renationalisation of the telecommunications group as part of plans to create a single broadband network in Italy by combining TIM’s landline network with that of its public rival Open Fiber.

This conflicts with TIM CEO Pietro Labriola’s strategy of selling TIM’s network to state creditor CDP to focus on services.

Brothers of Italy welcomed CDP’s decision to wait for the elections before submitting its non-binding offer for the TIM network.

THE RAI WAY

Public broadcaster RAI has frozen talks on a potential deal to combine its Rai Way broadcast tower unit with rival EiTowers, part-owned by Italy’s top commercial broadcaster MFE, until after the election, sources say.

AIRLINES

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ITA AIRWAYS

On August 31, Italy selected a group led by the American private investment fund Certares, backed by Air France-KLM and Delta Air Lines Inc, for exclusive talks on the purchase of a majority stake in the company. flagship airline ITA Airways.

The Brothers of Italy asked that the new government be authorized to make a final decision on ITA…

($1 = 0.9993 euros)



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