Neil's Feed
Mar 23, 2015
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Tronchetti and China pitch Pirelli price cleverly

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The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Pirelli’s would-be new owners have pitched their price cleverly. Marco Tronchetti Provera, the Italian tyremaker’s chairman and a leading shareholder, has teamed up with state-owned China National Chemical Corporation to buy and then delist the company’s shares. The deal highlights how Italian companies are up for sale to foreign owners, even at ungenerous prices.

Mar 23, 2015
via Breakingviews

Tronchetti and China pitch Pirelli price cleverly

Photo

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Pirelli’s would-be new owners have pitched their price cleverly. Marco Tronchetti Provera, the Italian tyremaker’s chairman and a leading shareholder, has teamed up with state-owned China National Chemical Corporation to buy and then delist the company’s shares. The deal highlights how Italian companies are up for sale to foreign owners, even at ungenerous prices.

Feb 13, 2015
via Breakingviews

Italian bad bank is worth the risk

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By Neil Unmack

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Italy’s bad bank is a good idea. Rome wants to set up a vehicle to hoover up banks’ dud loans. It’s risky: government-funded bad banks can wind up losing taxpayer money. Yet it could also help lending, and even spur consolidation in Italy’s fragmented banking system.

Feb 13, 2015
via Breakingviews

Italian bad bank is worth the risk

Photo

By Neil Unmack

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Italy’s bad bank is a good idea. Rome wants to set up a vehicle to hoover up banks’ dud loans. It’s risky: government-funded bad banks can wind up losing taxpayer money. Yet it could also help lending, and even spur consolidation in Italy’s fragmented banking system.

Feb 10, 2015
via Breakingviews

Capital controls an unpalatable option for Athens

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By Neil Unmack

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Capital controls are a messy option for Greece. This radical policy did less harm than expected during Cyprus’ banking crisis, and would buy time for Athens and its international creditors. The snag is that Greece’s position is weaker, and the politics more toxic.

Feb 10, 2015
via Breakingviews

Capital controls an unpalatable option for Athens

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By Neil Unmack

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Capital controls are a messy option for Greece. This radical policy did less harm than expected during Cyprus’ banking crisis, and would buy time for Athens and its international creditors. The snag is that Greece’s position is weaker, and the politics more toxic.

Jan 27, 2015
via Breakingviews

New Greek debt deal will mean more brinkmanship

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By Neil Unmack

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

A new debt deal for Greece will mean another unsettled period of brinkmanship. Markets are relaxed that the anti-bailout Syriza government will be able to cut a new arrangement with creditors. But pressure points lie ahead in March and July. Getting through these will need quick progress on tackling Greece’s bigger challenges.

Jan 14, 2015
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European court opinion gives QE a helping hand

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By Neil Unmack and Olaf Storbeck

The authors are Reuters Breakingviews columnists. The opinions expressed are their own.

The European Court of Justice is giving QE a helping hand. Its advocate general has blessed the principle of ECB government bond-buying, with few conditions attached. That provides cover for the central bank’s quantitative easing plans – and will do little to soothe German opposition to the ECB’s policies.

Jan 12, 2015
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Shire gambles AbbVie break fee on risky $5 bln deal

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By Neil Unmack

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Shire is gambling its AbbVie break fee on risky M&A. The Dublin-based pharma group has agreed to buy U.S. peer NPS to expand in lucrative rare drugs. The 51 percent premium is covered almost entirely by compensation from the collapse of Shire’s sale to larger American rival AbbVie last year. That doesn’t much mitigate the risk of doing a deal ahead of a key regulatory ruling.

Dec 31, 2014

Breakingviews: Goldman/Espirito Santo mess raises valid question

By Neil Unmack

LONDON (Reuters Breakingviews) – Goldman Sachs’ Banco
Espirito Santo mess raises valid questions. The U.S.
bank is threatening legal action after a loan to failed lender
Espirito Santo was moved by Portugal’s regulator into BES’ bad
bank. Goldman has fallen foul of Portuguese law, and may be a
victim of its own complexity, but the fiasco highlights the need
for greater clarity over European bank resolution schemes.

The fight between Goldman and the Portuguese central bank
dates back to a deal in June, 2014, whereby the U.S. bank loaned
BES $835 million to finance a refinery in Venezuela owned by
local oil company PDVSA. Goldman intended to sell
down $785 million of the loan through a vehicle called Oak
Finance. As BES’ situation soured in the following weeks, it was
stuck with some of the debt.