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Sep 18, 2014

Enel gears up for asset sales as it forges ahead in Latin America

MILAN, Sept 18 (Reuters) – Italy’s biggest utility Enel
faces a busy few months as it reshapes itself to
focus on Latin America, with its stake in Spain’s Endesa
under the spotlight and more than 4 billion euros ($5
billion) of assets in Eastern Europe to sell.

Enel, Europe’s most indebted utility, is looking to cut net
debt to about 37 billion euros by the end of this year from 41.5
billion euros at the end of March to keep its investment-grade
rating. To do that it has committed to sell around 4 billion
euros of assets this year.

Sep 11, 2014

Eni CEO investigated by prosecutors over Nigerian oil deal

MILAN, Sept 11 (Reuters) – Eni said on Thursday CEO
Claudio Descalzi is under investigation by Italian prosecutors
over alleged international corruption relating to a big Nigerian
oil deal.

Milan prosecutors opened an investigation into the deal
earlier this year and have now widened the net to include new
Eni CEO Descalzi in a case relating to its $1.09 billion
acquisition of Nigeria’s OPL-245 offshore oil block in 2011.

Sep 4, 2014

Italy court upholds U.S. ruling on Parmalat damages to Citibank

MILAN, Sept 4 (Reuters) – An Italian court has upheld a
ruling by a U.S. court for Italy’s Parmalat to pay
Citibank $431 million in damages in a case relating to the
dairy group’s bankruptcy more than 10 years ago, lawyers for the
U.S. bank said on Thursday.

Parmalat collapsed in 2003 after the discovery of a 14
billion euro ($18 billion) hole in its accounts. At the time it
was Europe’s biggest bankruptcy and its demise wiped out the
savings of more than 100,000 small investors.

Aug 29, 2014

Fiat says exit rights exercise won’t jeopardize Chrysler merger

MILAN (Reuters) – Fiat (FIA.MI: Quote, Profile, Research, Stock Buzz) said on Friday its merger with Chrysler was on track to go ahead as planned in October since it did not expect a 500 million euro ($658.3 million) cap on the money it set aside to pay off any dissenting shareholders would be breached.

Chief Executive Sergio Marchionne wants to incorporate the two carmakers into a Dutch-registered company called Fiat Chrysler Automobiles (FCA), paving the way for a U.S. stock market listing, key to help fund an ambitious investment plan.

Aug 28, 2014

Italy aims to thin out local utilities, form big national firms

MILAN, Aug 28 (Reuters) – Italy is planning legislation to
pry hundreds of public utilities from the control of local
authorities in a move toward consolidating a highly fragmented
sector to create big, national companies, according to ministry
sources and draft documents.

On Friday the centre-left government of Matteo Renzi is set
to unveil a package of measures aimed at shoring up some of the
weakest points of Italy’s sluggish economy.

Aug 26, 2014

Italy struggles with Plan B if Russian gas supplies cut

MILAN, Aug 26 (Reuters) – Italy will struggle to stay warm
this winter if Russia’s conflict with Ukraine disrupts gas
supplies and Libya veers towards collapse, putting at risk an
already shaky economic recovery following years of recession and
sluggish growth.

Caught between dwindling gas imports from North Africa and a
rising dependency on Russia, Italy’s contingency plans for a
complete breakdown in Ukrainian transit flows consist of raiding
stockpiles, arranging costly emergency shipments, as well as
forcing heavy industry to cut its output.

Aug 20, 2014

Clash at Luxottica could lead to CEO departure -sources

MILAN, Aug 20 (Reuters) – Luxottica, maker of
Ray-Ban and Persol sunglasses, could part ways with Chief
Executive Andrea Guerra due to disagreements over strategy with
founder and chairman Leonardo Del Vecchio, according to sources
close to the matter.

Three sources said Guerra, 49, who had helped the company
become world leader during his tenure, had fallen out with Del
Vecchio, 30 years his senior and Italy’s second-richest man.

Aug 8, 2014

Eni cutbacks bring welcome relief to Europe’s oil refiners

MILAN, Aug 8 (Reuters) – Plans by Italian oil major Eni
to slash its refining business by more than half could
squeeze out a quarter of Europe’s refining overcapacity,
bringing the ailing sector badly needed relief.

European nameplate refining capacity is around 15 million
barrels per day (bpd) but as demand falls and competition grows
analysts say around 1.5-2.0 million bpd of throughput capacity
needs to be mothballed by 2018 to balance the market.

Jul 31, 2014

Eni misses forecasts as Libya woes cloud outlook

MILAN, July 31 (Reuters) – Increasing instability in Libya
led Italian oil major Eni to miss second-quarter
forecasts for oil and gas output, although it still saw a 50
percent boost in net profit.

The company, which expects lower gas sales for the year due
to poor European demand, said on Thursday the worsening crisis
in Libya was the main cause for a rare 12.6 percent drop in
profit in its exploration and production business.

Jul 31, 2014

Debt-laden Enel could cut Endesa stake in shake-up

MILAN, July 31 (Reuters) – Europe’s most indebted utility,
Enel, plans to simplify its operations in Spain and
Latin America to ensure more cash flows into its coffers, and
may reduce its stake in Spanish unit Endesa as a
result.

The reorganisation is focused on stripping out Endesa’s
Latin American assets to give Enel more direct control over them
as it tries to reduce debts that stood at 43.1 billion euros
($57.7 billion) at the end of June, up 8.5 percent from the end
of December.

    • About Stephen

      "Based in Milan, I cover the Italian energy sector for the Italian team. I have followed energy in Italy for the last 10 years, previously for Bridge News, AFX and Thomson."
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