The document provides various examples of privatizations that occurred in Italy from the 1980s to the 1990s. It discusses early privatizations of the 1980s that aimed to reduce the public presence in the economy. This included the sale of Lanerossi Group to Marzotto in 1987. It then covers the major privatizations of the 1990s that were driven by political and economic pressures. Specific cases examined include the partial privatization of Nuovo Pignone to General Electric in 1994 and the full privatization of ILVA by liquidating its assets and transferring them to new companies in 1993.
Experiência do cliente e arquitetura de informação: cosméticos, perfumes e sa...E-Commerce Brasil
Guilhermo Reis - Gerente de Produtos B2B da Catho fala sobre "Experiência do cliente e arquitetura de informação: cosméticos, perfumes e saúde" no Fórum E-Commerce Brasil 2014.
An online certificate from a Coursera course called Financial Markets taught by Robert J. Shiller, Sterling Professor of Economics at Yale University, was awarded to Yao Wang on May 03, 2016 for successful completion of the course. The certificate can be verified on the Coursera website to confirm Yao Wang's identity and participation in the course.
Le infrastrutture in Italia e i processi di privatizzazione: presentazione di F2i - Fondi Italiani per le Infrastrutture su "Enti Locali e una nuova stagione di privatizzazioni"
La educación superior se refiere a la educación postsecundaria que incluye universidades, academias e instituciones de formación profesional. En Venezuela, la educación superior incluye universidades autónomas y experimentales como la Universidad Metropolitana y la Universidad Central de Venezuela. El Consejo Nacional de Universidades es el órgano rector de las universidades venezolanas y supervisa su autonomía y experimentación educativa.
Integração dos padrões MPEG na construção de ambientes de realidade virtual e...Estêvão Bissoli Saleme
Apresentação utilizada por Estêvão Bissoli Saleme no minicurso integrante do 15º Workshop de Realidade Virtual de Aumentada em 12/11/2014, na cidade de Marília, SP.
Experiência do cliente e arquitetura de informação: cosméticos, perfumes e sa...E-Commerce Brasil
Guilhermo Reis - Gerente de Produtos B2B da Catho fala sobre "Experiência do cliente e arquitetura de informação: cosméticos, perfumes e saúde" no Fórum E-Commerce Brasil 2014.
An online certificate from a Coursera course called Financial Markets taught by Robert J. Shiller, Sterling Professor of Economics at Yale University, was awarded to Yao Wang on May 03, 2016 for successful completion of the course. The certificate can be verified on the Coursera website to confirm Yao Wang's identity and participation in the course.
Le infrastrutture in Italia e i processi di privatizzazione: presentazione di F2i - Fondi Italiani per le Infrastrutture su "Enti Locali e una nuova stagione di privatizzazioni"
La educación superior se refiere a la educación postsecundaria que incluye universidades, academias e instituciones de formación profesional. En Venezuela, la educación superior incluye universidades autónomas y experimentales como la Universidad Metropolitana y la Universidad Central de Venezuela. El Consejo Nacional de Universidades es el órgano rector de las universidades venezolanas y supervisa su autonomía y experimentación educativa.
Integração dos padrões MPEG na construção de ambientes de realidade virtual e...Estêvão Bissoli Saleme
Apresentação utilizada por Estêvão Bissoli Saleme no minicurso integrante do 15º Workshop de Realidade Virtual de Aumentada em 12/11/2014, na cidade de Marília, SP.
Como viabilizar financeiramente o marketing digital nas pequenas lojas online...E-Commerce Brasil
O documento discute estratégias de marketing e vendas para produtos. Ele fornece conselhos sobre conhecer seu público-alvo e produto, estabelecer relacionamentos com clientes sem ser imediatista, não terceirizar completamente o marketing, entender métricas de marketing digital, assumir controle sobre a estratégia de marketing, considerar modelos de assinatura, ser transparente com clientes, e adotar abordagens multicanais quando possível.
1) Renato Castelo Branco publicou seu primeiro livro, A Chimica das Raças, em 1938 pela editora Cultura Brasileira.
2) Apesar de ser pouco conhecido, Renato publicou 23 livros entre 1938 e 1994 abordando temas como história, literatura e crítica social.
3) O texto analisa a inserção de Renato no campo literário brasileiro entre 1928-1938, considerando as influências recebidas e as relações estabelecidas.
This document discusses several key elements of indie rock music including genre, iconography used in album artwork and music videos, camera and editing techniques, sound qualities, narrative storytelling approaches, importance or lack thereof of star performers, live musical performances, and use of digipak album packaging formats.
The Music Ministry at First Presbyterian Church aims to engage the congregation and community in several ways:
1) It offers a variety of choirs and ensembles to provide opportunities for people of all ages to participate in and explore their musical gifts.
2) It chooses music from a diversity of styles, genres, cultures and time periods to represent the universal Christian church and speak to different congregants.
3) In addition to enhancing worship services, the music program provides educational and cultural opportunities for both church members and the broader community through concerts, recitals and other musical events.
Este documento presenta una introducción a la gestión de operaciones en empresas agropecuarias. Explica que la empresa agropecuaria se caracteriza por tener un proceso productivo basado en seres vivos y con alta dependencia del medio ambiente y recursos naturales, lo que hace compleja su optimización. Luego define los objetivos de la gestión de operaciones como administrar los recursos directos de producción (personas, plantas, partes, procesos y sistemas de planificación) para hacer un uso óptimo de ellos, buscando la máxima ef
O documento trata de um projeto de artes para a coordenação do ensino fundamental da Secretaria de Educação em 2016. O projeto visa desenvolver atividades artísticas para alunos do ensino fundamental, promovendo a expressão e a criatividade por meio de diferentes linguagens como música, teatro e artes plásticas.
Si vous êtes à la recherche d'une expérience de stage d'été enrichissante et si vous souhaitez faire partie d'une équipe dynamique qui vous permettra d'apprendre et de partager vos connaissances, nous sommes à la recherche de quelqu'un comme vous!
Assemblea dei Soci 2016 - Presentazione attivitàStefano Franco
Presentazione durante l'Assemblea di tutti i Soci di Alumni Mathematica.
Ho presentato le attività future e passato in rassegna le attività passate.
In particolare mi sono concentrato a presentare le attività dell'Associazione destinate alla ricerca scientifica indipendente.
L'incontro si è tenuto in data 26 Febbraio 2016 presso The Hub Bari, il Padiglione della Fiera del Levante dedicato alle startup e alle imprese creative.
The document provides information about various tourist destinations in Asia and Australia that could be suggested for air travel, including:
- Bangkok, Thailand, which discusses the country's history and attractions like Khao Yai National Park and elephant rides.
- Kuala Lumpur, Malaysia and Singapore, which provide background on the countries' histories and attractions in each like Merlion Park and Sentosa Island in Singapore.
- Sydney, Australia, with details on attractions around the city like the Sydney Opera House and Harbor Bridge, as well as other parts of Australia like the Great Barrier Reef in Cairns.
- Auckland, New Zealand is also listed briefly as a suggested destination. The document contains extensive
Role of Government Support to Micro Financing in Islamic Bank for Clean Water...Mercu Buana University
Microfinance for water connections have a very important role for low-income people who have the cash to pay
for clean water connections are limited. Clean water is a basic human need for survival. It is considered that the
Islamic banks to innovate microfinance products. Product innovation is the use of micro financing murabaha
contracts and feasibility analysis of interventions that aim to facilitate the applicant that low-income people get
clean water connections. In order for microfinance product water connection can have a wide impact, the role of government and stakeholders is required to minimize the risk.
This document discusses career planning and challenges, highlighting the importance of education, job opportunities in different sectors, and factors that influence career decisions. It provides an overview of the job market and salaries based on data, and emphasizes the value of ongoing professional development.
Mauro Maia: Presentation Adam Smith Assonime conventionMauro Maia
A presentation by Mauro Maia, F2i-Fondi italiani per le infrastrutture's Senior Partner, on the occasion of the Convention "Local Entities and a new season of privatizations" held in Milan on 2013, June, 3. Mauro Maia retraces the history of privatizations in Italy and describes F2i's role in the infrastructures sector.
Vito gamberale - role of private financing to push the development of transpo...Vito Gamberale
This document discusses the evolution and current state of transportation infrastructure in Italy. It outlines how Italy had an adequate infrastructure system until the 1970s when public financing declined and an anti-infrastructure attitude emerged. This led to underinvestment in maintenance and new projects. As a result, Italy now has significant infrastructure gaps compared to other European countries in areas like highways, ports, and airports. Addressing these deficiencies will require alternative financing models like public-private partnerships.
Vito Gamberale - Private financing of infrastructuresVito Gamberale
Vito Gamberale discusses private financing of infrastructure projects in Italy. Historically, Italy built major infrastructure projects through public financing from institutions and public bodies. In the 1980s, privatizations began, including selling state-owned companies to private entities and listing them on stock exchanges. More recently, local governments have looked to privatizations to help address their financial difficulties funding new infrastructure projects. Project financing, where private partners help fund projects, has had mixed success in Italy, working better for privately-led projects rather than those led by public sponsors. The financing of large highway projects in Italy through project financing has faced challenges from cost increases and delays compared to successful examples like the M6 Toll Highway project in the UK.
Fiat is the largest automobile manufacturer in Italy and traces its history back to 1899. It remained the largest manufacturer in Europe and third largest in the world. Ferrari is an Italian luxury sports car manufacturer based in Maranello known for its powerful brands. Maserati and Lamborghini are also Italian luxury vehicle manufacturers. Enel is an Italian multinational electricity and gas company that was originally a public body and later privatized. It employs around 70,000 people worldwide. Eni is an Italian multinational oil and gas company headquartered in Rome, operating in 79 countries, and considered one of the global supermajors.
Vito Gamberale - A Structural Reform for the Waste Management SystemVito Gamberale
Presentation of the speaking held by Vito Gamberale, CEO of F2i - Fondi Italiani per le Infrastrutture, on the conference Italia Decide, 4 April 2014, Turin.
Osservatorio Minibond - 2019 Italian Minibond Industry Report - English VersionRoberta De Matteo
The document provides an overview of the Italian minibond industry in 2018. It finds that while a record number of new minibond issues were recorded in 2018, the total capital raised declined. It analyzes 498 Italian companies that have issued minibonds since 2012, with 176 new issuers in 2018. On average, minibonds have a maturity of 5.3 years and a coupon rate of 5.1%. The top industries of issuers are manufacturing and the distribution of issuers reflects Italy's regional GDP. The report also outlines the key players involved in the minibond market and provides perspectives on the future of the industry.
Collection of Mergers and Acquisitions and Integration case histories from my first-hand experiences at GE, Fiat, Indesit, Corus, Areva, with lessons learned
The Borsa Italiana is Italy's main stock exchange based in Milan. It was privatized in 1997 and acquired by the London Stock Exchange in 2007. It facilitates trading in stocks and derivatives for over 130 brokers. Major indices include the S&P/MIB index of 40 large companies and the MIBTEL index covering all listed Italian shares.
The CIR Group is one of the largest industrial groups in Italy with over €5 billion in annual turnover. Founded in 1976, CIR operates in five business sectors: energy, media, automotive components, healthcare, and non-core investments. CIR is led by Chairman Rodolfo De Benedetti and CEO Monica Mondardini, and aims to create long-term value for shareholders through its portfolio of companies. The document provides details on CIR's main business sectors.
Como viabilizar financeiramente o marketing digital nas pequenas lojas online...E-Commerce Brasil
O documento discute estratégias de marketing e vendas para produtos. Ele fornece conselhos sobre conhecer seu público-alvo e produto, estabelecer relacionamentos com clientes sem ser imediatista, não terceirizar completamente o marketing, entender métricas de marketing digital, assumir controle sobre a estratégia de marketing, considerar modelos de assinatura, ser transparente com clientes, e adotar abordagens multicanais quando possível.
1) Renato Castelo Branco publicou seu primeiro livro, A Chimica das Raças, em 1938 pela editora Cultura Brasileira.
2) Apesar de ser pouco conhecido, Renato publicou 23 livros entre 1938 e 1994 abordando temas como história, literatura e crítica social.
3) O texto analisa a inserção de Renato no campo literário brasileiro entre 1928-1938, considerando as influências recebidas e as relações estabelecidas.
This document discusses several key elements of indie rock music including genre, iconography used in album artwork and music videos, camera and editing techniques, sound qualities, narrative storytelling approaches, importance or lack thereof of star performers, live musical performances, and use of digipak album packaging formats.
The Music Ministry at First Presbyterian Church aims to engage the congregation and community in several ways:
1) It offers a variety of choirs and ensembles to provide opportunities for people of all ages to participate in and explore their musical gifts.
2) It chooses music from a diversity of styles, genres, cultures and time periods to represent the universal Christian church and speak to different congregants.
3) In addition to enhancing worship services, the music program provides educational and cultural opportunities for both church members and the broader community through concerts, recitals and other musical events.
Este documento presenta una introducción a la gestión de operaciones en empresas agropecuarias. Explica que la empresa agropecuaria se caracteriza por tener un proceso productivo basado en seres vivos y con alta dependencia del medio ambiente y recursos naturales, lo que hace compleja su optimización. Luego define los objetivos de la gestión de operaciones como administrar los recursos directos de producción (personas, plantas, partes, procesos y sistemas de planificación) para hacer un uso óptimo de ellos, buscando la máxima ef
O documento trata de um projeto de artes para a coordenação do ensino fundamental da Secretaria de Educação em 2016. O projeto visa desenvolver atividades artísticas para alunos do ensino fundamental, promovendo a expressão e a criatividade por meio de diferentes linguagens como música, teatro e artes plásticas.
Si vous êtes à la recherche d'une expérience de stage d'été enrichissante et si vous souhaitez faire partie d'une équipe dynamique qui vous permettra d'apprendre et de partager vos connaissances, nous sommes à la recherche de quelqu'un comme vous!
Assemblea dei Soci 2016 - Presentazione attivitàStefano Franco
Presentazione durante l'Assemblea di tutti i Soci di Alumni Mathematica.
Ho presentato le attività future e passato in rassegna le attività passate.
In particolare mi sono concentrato a presentare le attività dell'Associazione destinate alla ricerca scientifica indipendente.
L'incontro si è tenuto in data 26 Febbraio 2016 presso The Hub Bari, il Padiglione della Fiera del Levante dedicato alle startup e alle imprese creative.
The document provides information about various tourist destinations in Asia and Australia that could be suggested for air travel, including:
- Bangkok, Thailand, which discusses the country's history and attractions like Khao Yai National Park and elephant rides.
- Kuala Lumpur, Malaysia and Singapore, which provide background on the countries' histories and attractions in each like Merlion Park and Sentosa Island in Singapore.
- Sydney, Australia, with details on attractions around the city like the Sydney Opera House and Harbor Bridge, as well as other parts of Australia like the Great Barrier Reef in Cairns.
- Auckland, New Zealand is also listed briefly as a suggested destination. The document contains extensive
Role of Government Support to Micro Financing in Islamic Bank for Clean Water...Mercu Buana University
Microfinance for water connections have a very important role for low-income people who have the cash to pay
for clean water connections are limited. Clean water is a basic human need for survival. It is considered that the
Islamic banks to innovate microfinance products. Product innovation is the use of micro financing murabaha
contracts and feasibility analysis of interventions that aim to facilitate the applicant that low-income people get
clean water connections. In order for microfinance product water connection can have a wide impact, the role of government and stakeholders is required to minimize the risk.
This document discusses career planning and challenges, highlighting the importance of education, job opportunities in different sectors, and factors that influence career decisions. It provides an overview of the job market and salaries based on data, and emphasizes the value of ongoing professional development.
Mauro Maia: Presentation Adam Smith Assonime conventionMauro Maia
A presentation by Mauro Maia, F2i-Fondi italiani per le infrastrutture's Senior Partner, on the occasion of the Convention "Local Entities and a new season of privatizations" held in Milan on 2013, June, 3. Mauro Maia retraces the history of privatizations in Italy and describes F2i's role in the infrastructures sector.
Vito gamberale - role of private financing to push the development of transpo...Vito Gamberale
This document discusses the evolution and current state of transportation infrastructure in Italy. It outlines how Italy had an adequate infrastructure system until the 1970s when public financing declined and an anti-infrastructure attitude emerged. This led to underinvestment in maintenance and new projects. As a result, Italy now has significant infrastructure gaps compared to other European countries in areas like highways, ports, and airports. Addressing these deficiencies will require alternative financing models like public-private partnerships.
Vito Gamberale - Private financing of infrastructuresVito Gamberale
Vito Gamberale discusses private financing of infrastructure projects in Italy. Historically, Italy built major infrastructure projects through public financing from institutions and public bodies. In the 1980s, privatizations began, including selling state-owned companies to private entities and listing them on stock exchanges. More recently, local governments have looked to privatizations to help address their financial difficulties funding new infrastructure projects. Project financing, where private partners help fund projects, has had mixed success in Italy, working better for privately-led projects rather than those led by public sponsors. The financing of large highway projects in Italy through project financing has faced challenges from cost increases and delays compared to successful examples like the M6 Toll Highway project in the UK.
Fiat is the largest automobile manufacturer in Italy and traces its history back to 1899. It remained the largest manufacturer in Europe and third largest in the world. Ferrari is an Italian luxury sports car manufacturer based in Maranello known for its powerful brands. Maserati and Lamborghini are also Italian luxury vehicle manufacturers. Enel is an Italian multinational electricity and gas company that was originally a public body and later privatized. It employs around 70,000 people worldwide. Eni is an Italian multinational oil and gas company headquartered in Rome, operating in 79 countries, and considered one of the global supermajors.
Vito Gamberale - A Structural Reform for the Waste Management SystemVito Gamberale
Presentation of the speaking held by Vito Gamberale, CEO of F2i - Fondi Italiani per le Infrastrutture, on the conference Italia Decide, 4 April 2014, Turin.
Osservatorio Minibond - 2019 Italian Minibond Industry Report - English VersionRoberta De Matteo
The document provides an overview of the Italian minibond industry in 2018. It finds that while a record number of new minibond issues were recorded in 2018, the total capital raised declined. It analyzes 498 Italian companies that have issued minibonds since 2012, with 176 new issuers in 2018. On average, minibonds have a maturity of 5.3 years and a coupon rate of 5.1%. The top industries of issuers are manufacturing and the distribution of issuers reflects Italy's regional GDP. The report also outlines the key players involved in the minibond market and provides perspectives on the future of the industry.
Collection of Mergers and Acquisitions and Integration case histories from my first-hand experiences at GE, Fiat, Indesit, Corus, Areva, with lessons learned
The Borsa Italiana is Italy's main stock exchange based in Milan. It was privatized in 1997 and acquired by the London Stock Exchange in 2007. It facilitates trading in stocks and derivatives for over 130 brokers. Major indices include the S&P/MIB index of 40 large companies and the MIBTEL index covering all listed Italian shares.
The CIR Group is one of the largest industrial groups in Italy with over €5 billion in annual turnover. Founded in 1976, CIR operates in five business sectors: energy, media, automotive components, healthcare, and non-core investments. CIR is led by Chairman Rodolfo De Benedetti and CEO Monica Mondardini, and aims to create long-term value for shareholders through its portfolio of companies. The document provides details on CIR's main business sectors.
TIP has invested 1.7 billion Euro directly and through club deals in companies in Italy and abroad, with about one third of investments each in luxury/fashion, technology, and healthcare. TIP focuses on investing in Italian, French, and German luxury excellence and unique brands, and supports long-term equity stories. TIP has shown strong financial performance and is more dynamic than peer investment companies in its investment and divestment levels.
This document summarizes the state of innovation in Italy. It discusses how Italy was once a leader in manufacturing and design but now faces challenges in areas like productivity, education, and women's participation. However, it also sees opportunities in Italy's growing startup ecosystem, with over 6,000 innovative startups now registered in Italy across many industries. The conclusion calls for more private investment in Italian startups to help them scale, and for startup entrepreneurs to strengthen their community and take their destiny into their own hands.
Privatization conundrum in the 21st century a study of privatized companies q...Alexander Decker
This document discusses a study analyzing the profitability of companies privatized and quoted on the Nairobi Security Exchange in Kenya. It provides background on the expansion of state-owned enterprises in Kenya and reasons for their poor financial performance. The government initiated privatization in the 1990s due to pressure from international financial institutions and to address criticism of state involvement in business. The study examines the profitability of privatized companies before and after privatization using financial ratios and t-tests to determine if there were significant changes. The conclusion is that the study found no significant changes in company profitability levels before and after privatization.
Roberto Di Pietra-Adopción de los códigos de buen gobierno: una perspectiva e...Fundación Ramón Areces
El 28 de febrero de 2017 la Fundación Ramón Areces continuó con el ciclo sobre 'Regulación Contable Internacional y Gobierno Corporativo' que celebramos en colaboración con la Cátedra UAM-Auditores Madrid de Información Financiera Corporativa. En esta ocasión, el profesor de la Universidad de Siena Roberto Di Pietra habló de la 'Adopción de los códigos de buen gobierno: una perspectiva europea'.
In the second quarter of 2018:
- The AIM Italia market index increased 2.17% while the FTSE MIB and FTSE STAR indexes decreased, driven by political instability in Italy.
- There were 4 IPOs on the AIM Italia market, raising a total of €194 million.
- The market remained diversified across industries, with consumer services and industrials making up the largest percentages of listed companies.
- Total market capitalization of the AIM Italia increased 11.44% to €7.5 billion, with growth supported by new listings and capital appreciation of existing companies.
Vito Gamberale - Infrastructures in Italy, the Role of Infrastructure FundsVito Gamberale
Presentation from Vito Gamberale (CEO of F2i – Fondi italiani per le infrastrutture) during the AIFI Annual Meeting held in Milan on March 31st 2014.
After providing an overview of the Italian infrastructural system evolution, Vito Gamberale described the current infrastructural investment scenario and the case of F2i – the world’s largest single-country investment fund.
Vito Gamberale - Speech at CCIAA Molise - May 22, 2015Vito Gamberale
This document summarizes Vito Gamberale's career and experience in leadership roles across several Italian companies from 1968 to 2014. It outlines the values and mentors that guided him, including integrity, commitment, rigor, and vision. It also provides an overview of his achievements and the approach he took in leading companies in various industries, including GEPI, ENI, TIM, Autostrade, and F2i. With F2i, he helped develop Italy's largest private equity fund and create national champions in sectors like gas, airports, water services, and more.
This document discusses entrepreneurship in Italian firms, focusing on small and medium businesses (SMBs) and industrial districts. Some key points:
- 98% of Italian companies have less than 50 employees, with over 80% having less than 10, making SMBs a major employer in Italy.
- Industrial districts are localized areas with a high concentration of specialized SMBs. There are nearly 200 districts across Italy's productive sectors.
- Districts offer advantages for SMBs like a collaborative culture, trust between companies, and an extended division of labor without the costs of large firms.
- The typical Italian entrepreneur is self-made, seeking social and self fulfillment through business success while tightly controlling their growth.
This document analyzes changes in industrial relations between two Italian automobile companies, Fiat Auto and Alfa Romeo. It discusses the rise and fall of national unions in Italy and how the two companies adjusted differently to industrial changes. Fiat asserted managerial control and repressed unions, resulting in confrontation, while Alfa Romeo experienced a more negotiated process. Local factors like union organization and leadership influenced the strategic choices and responses to change. The cases show industrial relations have shifted power to local unions and firms, with varying outcomes depending on local contexts, and this reflects broader trends in advanced economies.
Vito Gamberale - Local public services between the public and private domainVito Gamberale
The document discusses infrastructure development in Italy from the post-WWII period through the 1990s. It notes that until the 1970s, Italy had significant infrastructure like highways and nuclear power plants, driven by public financing. However, costs rose and quality declined in the 1970s-1980s. This led to privatizations in the 1990s at both the central and local levels, though local privatizations mainly just restructured public companies as joint-stock companies rather than transferring ownership. Privatizations at the central level had mixed results, with some companies like ENI performing well but others like Telecom struggling with debt. The document advocates for partial stock listings and restrictions on foreign sales to protect strategic infrastructure assets.
Vito Gamberale - Future networks. Infrastructure governance for development a...Vito Gamberale
Vito Gamberale discusses infrastructure networks in Italy. Some key networks like airports, waste-to-energy plants, highways, and telecommunications have room for improvement compared to other European countries. F2i was created as an institutional fund to invest in developing these networks by aggregating existing infrastructure assets in industries. F2i has committed over 1.67 billion euros across industries like gas, renewables, transportation, water, airports, and telecommunications.
Similar to Vito Gamberale: various examples of privatisations in italy (20)
Vito Gamberale - Intervention during the presentation of the 2016 Italiadecid...Vito Gamberale
The speech of Vito Gamberale during the presentation of the 2016 Italiadecide report: "Italiadigitale: Otto tesi per l'innovazione e la crescita intelligente".
Vito Gamberale - The Meaning of PunishmentVito Gamberale
This document discusses prison population trends and prison management in major European countries. It finds that Italy has the highest prison occupancy rate at 124.6% of capacity and the second highest rates of deaths and suicides in prison. The document argues that increasing prisoner employment, which is currently very low in Italy, is key to improving conditions and facilitating social reintegration, as work programs have been shown to reduce recidivism rates. It provides some examples of successful job training partnerships between an Italian prison and private companies. Finally, it suggests making prisoner employment compulsory by law to help it become standard practice.
Vito Gamberale: Photovoltaics like PCs and mobile phonesVito Gamberale
The document discusses the evolution of photovoltaics in Italy over the past 5-6 years. It notes that installed photovoltaic power has grown exponentially both globally and nationally. Photovoltaics now accounts for over 35% of renewable energy installed in Italy, exceeding the country's 2020 EU target. This has reduced reliance on traditional energy sources and lowered energy prices. The document argues that photovoltaics are following a similar development path to mobile phones and PCs, enabling decentralized energy generation. As costs continue to decline, grid parity is being reached, which will further increase the number of small domestic installations.
Vito gamberale - Italy's infrastructure system structure, characteristics, bo...Vito Gamberale
Italy's infrastructure system has faced significant challenges in recent decades due to a lack of public funding and an anti-infrastructure attitude. This has led to deficiencies across various sectors, including highways, airports, waste disposal, and others. Specifically, the highway network lags the European average in density per capita. The airport sector is also very fragmented, with most operators being public and only a few private. Addressing these issues will require overcoming obstacles to attracting private investment and developing new infrastructure projects.
Vito Gamberale - strategic role of gas and power networksVito Gamberale
The document discusses deficiencies in Italy's integrated water cycle and waste disposal sectors. It notes that these sectors are characterized by a large number of small, mainly public operators with insufficient funds for investment. This has led to poor infrastructure and low rates of privatization compared to other European countries. Consolidating operators could help rationalize assets and attract private funding to improve services.
The document summarizes information about F2i, an Italian infrastructure fund:
1. F2i has raised €1.852 billion, making it the largest fund in Italy and one of the largest infrastructure funds globally. It is managed by F2i SGR on behalf of various Italian and international investors.
2. Key investors include government entity CDP, major Italian banks, international banks, foundations, and pension/insurance funds. F2i SGR shareholders act as sponsors with representation on governance bodies.
3. After an initial fundraising period, F2i began investments in 2008 and has so far committed €977 million of its capital, delivering €568 million to investments.
F2i is an Italian infrastructure fund that was created in 2007 by major Italian financial institutions to invest in Italian infrastructure companies. The document provides an overview of F2i, including its background and positioning in the Italian market, capital commitments from sponsors, investment team experience, fund terms, current portfolio across sectors like gas distribution, airports, water, renewables, and waste-to-energy, and dividends from portfolio companies. F2i has invested over €1.85 billion from its first fund to create "national champions" in infrastructure sectors through M&A and organic growth.
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japanese language course in delhi near meheyfairies7
Next is the Nihon Language Academy in East Delhi, renowned for its comprehensive curriculum and interactive teaching methods. They boast a faculty of experienced educators with a blend of both Indian and Japanese nationals. The academy provides extensive support for JLPT exam preparation along with personalized tutoring sessions if needed. Nihon Language Academy also arranges exchange programs with partner institutes in Japan, which provides students an opportunity to experience Japanese culture and language first-hand.
Enabling Digital Sustainability by Jutta EcksteinJutta Eckstein
This is a New Zealand wide meetup event with meetup groups from Auckland, Wellington and Christchurch attending and open to anyone with an interest in digital sustainability or agile. All welcome. Joke, this is how it started. Jutta is now also available in Germany, i.e. hosted by Berlin/Brandenburg
According to the World Economic Forum, digital technologies can help reduce global carbon emissions by up to 15%. However, digitalization also comes with some challenges. Thus, if we want to make a positive impact by increasing sustainability, we need to address challenges like the digital divide, energy consumption of IT, or the rise of electronic waste. In this talk, I want to explore how Agile can help to leverage Digital Sustainability.
Discover the Beauty and Functionality of The Expert Remodeling Serviceobriengroupinc04
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NewBase 20 June 2024 Energy News issue - 1731 by Khaled Al Awadi_compressed.pdfKhaled Al Awadi
Greetings,
Hawk Energy is pleased to present you with the latest energy news
NewBase 20 June 2024 Energy News issue - 1731 by Khaled Al Awadi
Regards.
Founder & S.Editor - NewBase Energy
Khaled M Al Awadi, Energy Consultant
MS & BS Mechanical Engineering (HON), USAGreetings,
Hawk Energy is pleased to present you with the latest energy news
NewBase 20 June 2024 Energy News issue - 1731 by Khaled Al Awadi
Regards.
Founder & S.Editor - NewBase Energy
Khaled M Al Awadi, Energy Consultant
MS & BS Mechanical Engineering (HON), USAGreetings,
Hawk Energy is pleased to present you with the latest energy news
NewBase 20 June 2024 Energy News issue - 1731 by Khaled Al Awadi
Regards.
Founder & S.Editor - NewBase Energy
Khaled M Al Awadi, Energy Consultant
MS & BS Mechanical Engineering (HON), USAGreetings,
Hawk Energy is pleased to present you with the latest energy news
NewBase 20 June 2024 Energy News issue - 1731 by Khaled Al Awadi
Regards.
Founder & S.Editor - NewBase Energy
Khaled M Al Awadi, Energy Consultant
MS & BS Mechanical Engineering (HON), USAGreetings,
Hawk Energy is pleased to present you with the latest energy news
NewBase 20 June 2024 Energy News issue - 1731 by Khaled Al Awadi
Regards.
Founder & S.Editor - NewBase Energy
Khaled M Al Awadi, Energy Consultant
MS & BS Mechanical Engineering (HON), USAGreetings,
Hawk Energy is pleased to present you with the latest energy news
NewBase 20 June 2024 Energy News issue - 1731 by Khaled Al Awadi
Regards.
Founder & S.Editor - NewBase Energy
Khaled M Al Awadi, Energy Consultant
MS & BS Mechanical Engineering (HON), USA
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Vito Gamberale: various examples of privatisations in italy
1. Vito Gamberale – Various examples of privatisations in Italy
VARIOUS EXAMPLES OF PRIVATISATIONS
IN ITALY
Vito Gamberale
Italiadecide – School for public policies
Rome, April 17, 2012
2. Vito Gamberale – Various examples of privatisations in Italy
Table of contents
Privatisations of the 80’s Pg. 3
The Lanerossi case Pg. 6
The big privatisations of the 90’s Pg. 8
Manufacturing companies Pg. 11
Nuovo Pignone Pg. 12
ILVA Pg. 14
SME Pg. 16
Service and infrastructure companies Pg. 19
ENI Pg. 21
ENEL Pg. 23
Telecom Italia Pg. 26
SEAT Pagine Gialle Pg. 29
Autostrade Pg. 32
Aeroporti di Roma Pg. 34
Notes on privatisation in Europe Pg. 37
F2i as a privatisation tool of the local assets Pg. 44
Conclusions Pg. 60
2
3. Vito Gamberale – Various examples of privatisations in Italy
3
Privatisations of the 80’s
4. Vito Gamberale – Various examples of privatisations in Italy
4
Privatisations of the 80’s
In the early 80’s, Italy’s business community was founded on 3 pillars:
Big public groups, created with the nationalisation of the 30’s, which supported
Italy’s reconstruction and development after World War II and ensured the survival of
relevant industrial entities (e.g. the iron and steel sector, the building sector, the
energy sector, etc.).
These groups, which represented the government’s presence in the economy, gave birth
to a «mixed economy» pattern in Italy, one of the most advanced in the industrialised
world, with a particularly strong presence in the infrastructure and technological
manufacturing sectors.
Big private companies, which often belonged to single families, and were born
before the war or at the time of the Italian «economic miracle».
A high number of small to medium size companies, characterised by their
innovation approach and high-level efficiency.
During the 80’s, the public presence in the economy was strongly questioned.
For the sake of the evolution of international markets (beginning of the
«globalisation»), of competition and apparent inefficiency, a campaign started –
sometimes with no real foundations – to dismantle public companies because of
the high costs of occasional recapitalisations, and because of the government’s
high debt.
5. Vito Gamberale – Various examples of privatisations in Italy
This first privatisation phase concluded with contrasting results for the
government and often favoured big historical family groups, with no substantial
benefits for the market. 5
Privatisations of the 80’s
A first phase of public presence reduction in the industry started, mainly led
by IRI:
Among the most relevant operations of this
period, the following need mentioning:
FIAT’s acquisition of Alfa Romeo (IRI) in 1986
sale of the Lanerossi Group (ENI) to Marzotto
(probably the most successful case, see focus in the
following slide)
…however, there were also some unsuccessful
cases:
the ENIMONT case (company created through and
agreement between ENI and the Montedison private
Group) that resolved in the break-up of the agreement
and the restitution of all activities to ENI
the SME case (food company owned by IRI), whose
first sale attempts were unsuccessful because of the
well-known legal arguments with political implications
that persisted for a long time.
OVERALL TOTAL 8,790Source: ISTAT
Size of the sales between 1986-1989 of the three main
management bodies IRI, ENI and EFIM (bil Lira)
Privste-owned shares in some companies of the IRI Group,
listed at the stock exchange (% data at year closing)
Company
Year
Source: IRI
6. Vito Gamberale – Various examples of privatisations in Italy
6
Lanerossi was founded in Schio (province of Vicenza) in 1873 by the Rossi family and was the biggest
Italian integrated-cycle woolen company (ranging from woolen to textiles to clothing) and one of the
biggest companies in Italy.
The company produced woolen textiles for various usage: clothing, cloths, covers, yarns for hand-
knitting and industrial use.
The production was located in various factories in the province of Vicenza, which included those of
Schio Piovene, Rocchette, Torrebelvicino, Pieve, Dueville, Marano Vicentino, Vicenza, Montorio.
The company sold its products worldwide through a very extensive sales network in the USA, URSS,
Germany, Poland, South Africa, Canada, etc.
After a critical phase (1955-1957), the company achieved excellent results under the management of
Giuseppe Eugenio Luraghi. In 1959 it achieved a turnover of 23 bil Lira, employing 10,000 people.
In the early 60s, in part because of the stock exchange speculations that afflicted the company’s shares,
Lanerossi once again faced critical conditions and was purchased in 1962 by ENI in the framework of
a series of rescue operations of declining national companies.
Through time, ENI created a textile group of relevant dimensions around Lanerossi (about 10,000
employees), which not only included the company from Vicenza but also other companies «rescued» by
ENI (Confezioni Monti, INTESA, Confezioni di Filottrano, MCM, etc.).
In February 1986 ENI decided to privatise Lanerossi, following a strategy based on re-focusing on
the core business. The privatisation was accomplished in two steps: 1) eliminating a few declining
companies from the group (a total of 11 factories and 5,000 employees) and assigning them to a new
entity in the company, and 2) selling the industrially active part of the Lanerossi to private entities.
Privatisations of the 80’s
The Lanerossi case
7. Vito Gamberale – Various examples of privatisations in Italy
7
The main conditions from ENI on the acquisition of Lanerossi were:
protection of the employment levels (about 3,000 employees in 1986)
confirmation of the ongoing investments
a certification that the dimensions of the acquiring company would be equal to Lanerossi’s.
In 1986 Lanerossi’s balance sheet (with minor losses) indicated:
turnover: 587 bil Lira
net asset: 147 bil Lira
NFP: 170 bil Lira
ENI’s advisor in this operation, Paribas from France, selected four industrial groups: Marzotto,
Benetton-Inghirami, Bertrand Group and the French company Dolfuss Mieg.
On July 22 1987, Marzotto offered the highest bid and acquired Lanerossi with 168 bil Lira (14%
premium on the net assets).
Founded in 1836, Marzotto is a woolen company based in Valdagno (VI), led by Pietro Marzotto and
listed at the stock exchange. Its turnover in 1986 amounts to about 700 bil Lira, with a GTM of about
100 bil and debts of about 200 bil. In 1985 it acquired the Bassetti Group.
Through this acquisition a Group with a 1,300 bil turnover was born, which accounted for a
10% share of the European woolen market.
This operation was considered a success both for ENI, whose profits were high through
a company on a constant downfall, and for Marzotto, who, thanks to operational
synergies, achieved the necessary dimensions to compete at a European level.
Privatisations of the 80’s
The Lanerossi case
8. Vito Gamberale – Various examples of privatisations in Italy
8
The big privatisations of the 90’s
9. Vito Gamberale – Various examples of privatisations in Italy
9
The big privatisations of the 90’s
During the 90’s, Italy was involved in important processes that forced the country
to radically change its economic policies:
the political crisis, which started with the «tangentopoli scandal» and the
«defenestration» of an entire generation of public administration managers
the economic decline: Italy’s GDP, after a decrease during the years of the
tangentopoli scandal (-0.8% in 1993), increased again but has since ranked constantly
below the European average
the adoption of the Euro, which requires respecting the Maastrich parameters and,
therefore, accounting for the need to drastically reduce deficit, debt and inflation with
very strict financial actions
the European Community urging a reduction of the public commitment in the
member states’ economies (Commissioner Van Miert will take advantage of Italy’s
particular weakness to only «push» this particular country).
The following governments were forced to resort to any possible mean to
«cash in».
This forced the government to push for the privatisation process, which in
some cases was dominated by a characterised rush instead of potential
effectiveness.
10. Vito Gamberale – Various examples of privatisations in Italy
10
The big privatisations in the 90’s
The phase of big privatisations started in 1992, when the Amato Government
approved Law 359/92 (the so-called «state participations’ reorganisation
programme»), with the following binding objectives:
to give value to participation for following business cession
to list the participating companies at the stock exchange
to promote a diffused share ownership
to limit the dismissal of activities considered strategic for public entities
to promote the growth of new institutional investors.
Privatisations involved:
manufacturing companies, which were often in decline (e.g. the iron and steel
sector) or were held by entities whose core business lied in other kinds of business
(e.g. ENI rescued many companies of various sectors in the previous decades)
service and infrastructure companies (ENI, ENEL, Telecom, Autostrade, credit
institutions, etc.), which are likely to produce the highest profits.
11. Vito Gamberale – Various examples of privatisations in Italy
11
In the case of manufacturing companies, privatisation was accomplished mainly
through sales to private entities, usually following a competition process. Three
cases of this are:
in 1994 Nuovo Pignone (initially a partial privatisation);
in 1995 ILVA (full privatisation);
from 1993 to 1996 SME (division between three groups – GS, Autogrill,
Cirio – and full privatisation)
The big privatisations of the 90’s
Manufacturing companies
12. Vito Gamberale – Various examples of privatisations in Italy
12
The company, which produced iron as well as cast iron manholes and lamp posts, was founded in
Florence in 1842 by Pasquale Benini.
After alterning positive and negative phases and production changes (from spark-ignition engines, to
weapons to textile looms), the company was on the verge of bankruptcy when it ENI acquired it in
1954.
ENI focused the production mainly on machinery and tools for the oil and petrochemical industries, as
well as refineries, natural gas and power production industries. The company started to receive
important orders by third parties.
In addition to the factories in Florence and in Massa, new ones were opened in Talamona (province of
Sondrio) in 1961, in Vibo Valentia in 1962, in Porto Recanati (province of Massa Carrara) in 1963, in
Schio (province of Vicenza) in 1968 and in Bari and Rome in 1972.
In 1986, 18% of the assets were listed at the stock exchange in 4,250 Lira/sh.
In September 1992, the Amato Government decided to give an explicit sign to privatisations, a
subject that had been discussed at great length. In the new phase of government asset release, the first
companies to undergo privatisation were Nuovo Pignone (owned by ENI) and Credit (IRI).
The selling process of Nuovo Pignone underwent a competition process, managed by IMI, which was
long and complex, especially because of the «tangentopoli scandal» and its following political crisis.
In March 1993, the company’s president Franco Ciatti was arrested.
In November 1993, four networks (Alshtom, ABB-Atlas Copco, Dresser Industries and Ingersoll
Rand, General Electric together with another group of Italian banks).
The big privatisations of the 90’s
Manufacturing companies – Nuovo Pignone
13. Vito Gamberale – Various examples of privatisations in Italy
13
In May 1994 General Electric purchased 70% of Nuovo Pignone for 7,000 Lira/sh (for a total
700 bil), with a listing at the stock exchange of 6,269 Lira/sh. The premium for the vendor was
about 12% (however, before privatisation began, the share dropped to about 3,000 Lira/sh).
ENI registered a capital gain of about 450 bil and profited from a financial effect of about 1,200
bil, also considering the debt transferred outside the group.
The acquisition process lasted for years after the mandatory PPO and the acquisition of new shares
held by ENI. In 1998 ENI sold a remaining package of 9.5% to GE, for another 150 bil more.
The GE management (committed to investing and increasing production in Italy1
) determined a
significant growth of the company, as demonstrated by the increase in turnover (+134%) and net
invested assets (+230%) few years after privatisation:
The privatisation of Nuovo Pignone was successful and represented the starting point
for the international growth of industrial entities, which stayed on the Italian territory
even though they were controlled by controlled by foreign players2
.
The big privatisations of the 90’s
Manufacturing companies – Nuovo Pignone
1
Following the agreement, ENI kept a share of Nuovo Pignone until 2005.
2
Today Nuovo Pignone is the only forerunner (Oil&Gas division) of the GE Group to have a seat outside the US.
1993 €/bil Margins
Turnover 732
Contribution margin 324 44.3%
Operating result 115 15.7%
Net profit 29 4.0%
NIC 540
Net assets 178
NFP 362
1997 €/bil Margins
1.716
818 47,7%
258 15,0%
86 5,0%
1.784
356
1.427
2010 €/bil Margins
3.830
2.179 56,9%
439 11,5%
281 7,3%
737
763
-26
Turnover
Contribution margin
Operating result
Net profit
NIC
Net assets
NFP
Turnover
Contribution margin
Operating result
Net profit
NIC
Net assets
NFP
14. Vito Gamberale – Various examples of privatisations in Italy
14
ILVA was created in 1988 from Finsider, belonging to IRI since 1937, and has been an established
leader of the governmental companies operating in the iron and steel industry.
In 1988, IRI decided to liquidate Finsider (which registered 1,000 bil annual losses and a 10,000 bil
debts) as well as the main companies in the Group (Italsider, Terni Acciai Speciali and Nuova
Deltasider).
In the framework of the same operation, IRI assigned the iron and steel activities that were considered
recoverable, and the control package of Dalmine to a new company, ILVA SpA, with the objective to
help with the recovering of the iron and steel state sector.
In the late 80’s ILVA was profiting once again, but in 1992 the company faced a new crisis (2,600 bil
net loss and 8,000 bil debt). The government decided to accept privatisation.
On October 31 1993, ILVA was liquidated, while its assets were transferred to two new companies:
Ilva Laminati Piani (ILP) and the Acciai Speciali Tirreni (AST). ILP assigned plants in Taranto, Genoa
Sestri, Novi Ligure and Turin, to produce flat laminates.
After more than a one-year break due to the political crisis, ILP was sold for 2,332 bil in April 1995
to RILP1
, controlled by the Riva Group, for about 75%. The other partners were: the Indian group
Essar, the Acciaierie Valbruna Group, Metalfar from Erba and a network of banks (creditors of the
Riva Group), among which San Paolo, BNL, Cariplo, Banca di Roma and Comit. In 1997 Riva
increased its capital to about 85%.
The big privatisations of the 90’s
Manufacturing companies – ILVA
1
RILP kept however the 1994 dividends of ILP (374 bil) and, therefore, had a net expense of 1,958 bil.
15. Vito Gamberale – Various examples of privatisations in Italy
15
The Riva Group was founded in Milan in 1954 by the Riva Family. Before the acquisition, this was a
middle-big size iron and steel group, smaller than ILVA but already internationally-active and
characterised by good economic results.
The two companies before privatisation
The Riva Group acquired ILP with a 17% premium on the net assets. The EV/BITDA ratio is 4.0x.
The government, in addition to profits, could get rid of a debt of 1,500 bil.
In 1995, after the operation, the Riva Group had a turnover of 11,000 bil, thanks to ILP, with
almost 1 bil net profit and 26,500 employees.
This operation was yet another success story for the government, which sold
activities they could no longer manage economically, as well as for the buyer,
who became one of the top 10 iron and steel groups worldwide during the
following years.
The big privatisations in the 90’s
Manufacturing companies – ILVA
+52% vs. 2009
€/mil Margins €/mil Margins
1,576 2.758
110 7.0% 492 17,8%
58 3.7% 352 12,8%
n.a. 775
426 1.030
20.000 ca.
Riva Group - 1994 ILP - 1994
€/mil Margins
8,384
642 7.7%
-66 -0.8%
2,487
3,895
About 22,000
Riva Group - 2010
About 6,000
Turnover
GTM
Net profit
Net assets
NFP
Employees
Turnover
GTM
Net profit
Net assets
NFP
Employees
Turnover
GTM
Net profit
Net assets
NFP
Employees
16. Vito Gamberale – Various examples of privatisations in Italy
16
SME (Società Meridionale di Elettricità) was created by Comit in 1899 as an Italian company
producing power energy, operating in the region of Campania and in the rest of southern Italy.
In 1937 its ownership moved from the banks to the newly instituted IRI, in particular to Finelettrica
(1962).
After the nationalisation of the power energy sector in 1962, the company used the resources from the
compensations assigned by the government to invest in the agriculture and food sector.
In 1963 the first companies were acquired: Supermercati GS, Cirio and Surgela. In the following years
(between ’65 to ’75) Motta, Alemagna, Alimont and Star followed. Also some important companies,
such as Autogrill and Italge, were by then reporting to SME.
During the 70’s and until the early 80’s, SME was the biggest agro-industrial business group and
among the major companies in IRI that could report the best economic results.
In 1985, IRI, in the framework of a discharging plan with the objective to focus on more strategic
sectors compared to the food industry, decided to sell SME, even though the outcomes were positive.
Initially, IRI decided to sell to Entrepreneur Carlo De Benedetti, already owner of Buitoni and
Perugina. The offered price was about 500 bil Lira for 44% of the shares.
Following obstacles created by the government and other political powers, various buyers made new
offers; a series of legal disputes arose and doomed the operation.
SME was still growing: in 1993 its turnover was 6,000 bil, its consolidated profit 131 bil, the company
invested 330 bil, with 15,000 employees.
The big privatisations of the 90’s
Manufacturing companies – SME
17. Vito Gamberale – Various examples of privatisations in Italy
17
In 1992 the government decided to pursue the selling of SME’s industrial activities (Italgel and
Cirio Bertolli de Rica), as well as part of IRI’s participation in the company.
Before the privatisation, the three main activities of the group were separated (frozen foods, canned
goods, and big distribution/catering) between three different companies (Finanziaria Italgel,
Finanziaria Cirio Bertolli De Rica [CBD] and SME, this one including Supermercati GS and
Autogrill). After the separation, IRI held 62.1% of the assets of each company.
The separation had the objective to maximise sale profits, vs. a single discharge.
The sale operations were complicated and continued from 1993 until 1996, providing the
government with 2,044 bil. The following summarises what happened:
in 1993 Italgel (brands: Motta, Alemagna, Antica Gelateria del Corso, Surgela, Valle degli Orti)
was sold to Nestlé for 431 bil
in 1993 CBD was sold to FISVI, managed by the entrepreneur Lamiranda, for 311 bil. In
1994 Lamiranda sold Bertolli to Unilever for 253 bil and Cirio to Sgrit (Cragnotti Group) for
about 400 bil, obtaining therefore more than twice as much as what he had spent
in 1995-1996 SME (GS + Autogrill) was sold to the network Edizione Holding-Del with a
complicated procedure that gave a return of 1,302 bil. In 2000, after four years, the entire
share held by GS (64%) was sold to the Carrefour Group for 2.6 bil €.
The big privatisations of the 90’s
Manufacturing companies – SME
This «crumbled» privatisation gave a return to the government of four times as much as the offer
received in 1986. Buyers also benefitted from the privatisation, on both economical and industrial
levels. Today Autogrill is a worldwide entity, as it included groups like HMSHost, Receco, Anton
Airfood. GS became part of the International Carrefour Group.
18. Vito Gamberale – Various examples of privatisations in Italy
18
Just like the cases of Nuovo Pignone, ILVA and, to a certain extent, SME, the
privatisation of manufacturing companies often represented a success for the
government, because:
strategic assets were no longer sold, which were characterised by dimensions and, in
particular, management patterns that were not always adequate for international
competition; this also basically protects employment
high or less high capital gains were achieved, often on assets that had determined
losses for years. At the same time, their financial debts were taken from the
government’s budget
the sold companies acquired more energy. Synergies with the buyers determined
the industrial growth of a specific area (see the case Nuovo Pignone) or the
creation of new «national champions» able to acquire in the middle-term worldwide
relevance (see the case of ILVA-Riva).
The big privatisations of the 90’s
Manufacturing companies
The main success element was the selling of these companies to
entities operating in the same sector, able to add value to the
companies during the acquisition (for the government’s benefit)
and to efficiently manage them afterwards.
19. Vito Gamberale – Various examples of privatisations in Italy
19
The privatisation of service and infrastructure companies are usually
accomplished by a listing of part of the assets at the stock exchange...
in 1995 ENI (partial privatisation)
in 1999 ENEL (partial privatisation)
…or through a direct sale to private entities:
in 1997 Telecom, (initially partial, then full privatisation), which changed
ownership several times;
in 1997 SEAT Pagine Gialle (full privatisation);
in 1999 Autostrade (full privatisation);
in 1999-2000 Aeroporti di Roma.
The big privatisations of the 90’s
Service and infrastructure companies
20. Vito Gamberale – Various examples of privatisations in Italy
20
The main examples of privatisation of service and infrastructure companies
through a listing at the stock exchange are ENI and ENEL.
The big privatisations in the 90’s
Service and infrastructure companies
21. Vito Gamberale – Various examples of privatisations in Italy
After 1995, a little over two and half years, the Treasury set about 63% of capital shares on the market
through 4 bids, with a total income of over 21 bil €.
This amount, during that time period, represented the biggest revenue ever achieved by a
Western European government with the sale of only one company.
The market reacted positively to the ENI offers, moving from the 194,000 subscribers at the time of the
IPO, to 1.7 mil in the fourth tranche.
The employees contributed decisively to the success of the different tranches, moving from about
30,000 subscribers at the IPO (40% of the eligible) to about 41,000 with «ENI 4» (totally 70% of the
eligible).
In February 2001 a fifth collect began, this time with institutional investors, for 5% of the company
assets, with a total revenue of 2.7 bil €.
21
The big privatisations in the 90’s
Service and infrastructure companies – ENI
ENI is today the second biggest energy group in Europe, with stocks worth 16.5 €/sh.
ENI’s privatisation was a success for the government as well as for the investors
Price at positioning
Number of located
shares
of which, per bonus
share assignment
Company asset
percentage (1)
Revenue
(euro/share)
(mil euro)
22. Vito Gamberale – Various examples of privatisations in Italy
22
The big privatisations of the 90’s
Service and infrastructure companies – ENI
ENI’s stock trend after privatisation
Note: no data available before 1996
16.5
€/sh
23. Vito Gamberale – Various examples of privatisations in Italy
23
In 1992, in the framework of a governmental budget reorganisation, ENEL turned into a SpA (Italian:
Società per azioni, limited company), in which the Treasury appeared as the sole shareholder.
In 1999 the privatisation process started, and was organised in 5 tranches: one in 1999, two in 2003,
another one in 2004 and a final one in 2005.
The first tranche was placed on the market for 4.3 €/sh. This was a very good price for the
government when considering that today (two years later) the stock now has a value of about
2.5 €/sh.
Overall, these five tranches gave an even higher value than with ENI’s privatisation, and provided the
Treasury with roughly 34 bil € for about 75% of the assets.
The privatisations per listing at the stock exchange were
successful for the Government, in the ENEL case, but not for the
subscribers.
The big privatisations of the 90’s
Service and infrastructure companies – ENEL
Tranche Year Sold share Price (€/sh.) Proceeds (bil €)
1 1999 32.42% 4.3 16.5
2 2003 6.60% 5.4 2.2
3 2003 10.35% 5.0 3.2 Sold to CDP
4 2004 19.30% 6.6 7.6
5 2005 9.37% 7.1 4.1
TOTAL 78.04% 33.6
24. Vito Gamberale – Various examples of privatisations in Italy
24
ENEL’s stock trend after privatisation
Note: no data available before 2000
2.5
€/sh
The big privatisations of the 90’s
Service and infrastructure companies – ENEL
25. Vito Gamberale – Various examples of privatisations in Italy
25
The main examples of privatisation of service and infrastructure companies through
direct selling to private entities are Telecom Italia, SEAT Pagine Gialle and
Autostrade.
The big privatisations of the 90’s
Service and infrastructure companies
26. Vito Gamberale – Various examples of privatisations in Italy
26
STET and Telecom Italia merged in September 1997. The Treasury holds 45% of the post-merge
capital.
Also in 1997, about 35% of the assets (about 13 bil €) were sold (through direct sales and public
offering).
A «small but hard core» holding just 6.6% of the shares, led by IFIL (FIAT) – which holds only 0.6%!
– overtook the control of the company and replaced the management.
Among all analised privatisations, this is the least profitable for the government: the EV/EBITDA
ratio, for example, is a 3.4-fold (compared to 7.2 of ENEL and 5.4 of ENI).
After this, the company changed ownership many times (Colaninno, Pirelli, Telco, Telefonica), which
led to a heavy debt and the loss of the international prestige it had acquired in the years of STET
management.
The government’s presence with Telecom Italia will persist until 2002 with the 5.2% share held by the
treasury, and until 2006 with the 2.3% share held by the Bank of Italy.
The big privatisations of the 90’s
Service and infrastructure companies – Telecom Italia
Company Year EV/EBITDA Price/PN
Nuovo Pignone 1994 7.39x 2.90x
ILVA 1995 4.03x 1.17x
ENI (average 5 tranche) 1995 - 2001 5.40x 2.10x
ENEL(ony 1st tranche) 1999 7.20x 3.00x
Telecom Italia 1997 3.40x 1.70x
Autostrade 1999 9.40x 4.50x
27. Vito Gamberale – Various examples of privatisations in Italy
27
The big privatisations of the 90’s
Service and infrastructure companies – Telecom Italia
Telecom Italia – Net Financial Position Variations/ EBITDA
The following leverage buy-out operations with Telecom led to a debt «explosion», which is still
lasting today:
Among the biggest companies, Telecom Italia is the only privatisation that was a true and
complete failure, despite the concessors and private investors who followed the process,
and "massacred" the company with debts.
Colaninno
and Capitali
Coraggiosi
acquisition
Olimpia
(Pirelli and
others)
acquisition
Telefonica
enters the
company
0.7
1.5
1.6
2.4
2.3
2.0
3.2
2.9
3.2 3.1 3.1
2.8
2.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
28. Vito Gamberale – Various examples of privatisations in Italy
28
The big privatisations of the 90’s
Service and infrastructure companies – Telecom Italia
Telecome Italias’s stock trend since 1997 to date
0.83
€/sh
29. Vito Gamberale – Various examples of privatisations in Italy
29
In January 1997 Seat (IRI-STET Group) was listed at the stock exchange and, in
November of the same year, driven by an unintelligible conflict of interest, a private
entrepreneurial network (Ottobi) ─ which counted affiliations with Telecom Italia (in
net minority), Comit, De Agostini and Investitori Associati ─ took over 61.27% of
SEAT shares, held at that time by the Treasury.
The Treasury paid 848.7 mil € of those share (price for 61.27%, equal to 1.38 bil € for
100%), whereas the free floating PPO was basically deserted.
Since November 2000 SEAT Pagine Gialle returned under the ownership of the
Telecom Group, through the integration of Tin.it.
At the end of the operation, the Telecom Group obtained 65.09% of SEAT Pagine
Gialle. In particular, Telecom paid 40.8% held by the other partners of Ottobi, which
amounted to 6.7 bil €, for an equity value of 100%, equal to 16.4 bil € (at that time the
stock achieved a capitalisation of about 20 bil €.
Overall, three years following privatisation, the other partners obtained from
Telecom a price 10 times bigger than the price paid to the government!
The big privatisations of the 90’s
Service and infrastructure companies – SEAT Pagine Gialle
1
For ordinary shares the offered price is 713 Lira/sh, vs. a stock exchange value that, in the days immediately before the PPO, peaked to
1,292 Lira/sh. The price offered for the PPO was aligned with the price paid by Ottobi to the Tresury just few months before, which the
market already considered too low compared to the company real value.
30. Vito Gamberale – Various examples of privatisations in Italy
30
In August 2003 Seat Pagine Gialle split up into two companies:
Seat SpA, assigned with the following activities:
• advertisement, sales and publication of paper and online products
• delivery of new information services via telephone, and call center activities
• marketing services and database management for companies.
Telecom Italia Media SpA, 77.7% of which is now controlled by the Telecom
Italia Group, and operates in television production (it controls LA7 and MTV
Italia).
Within the same operation, Silver SpA, a consortium that included the CP Partner
Funds, CVC, Investitori Associati and Permira, purchased 62.5% of Seat SpA from the
Telecom Group for 4.93 bil €.
The big privatisations of the 90’s
Service and infrastructure companies – SEAT Pagine Gialle
The consortium burdened
the company with a very
big debt, which is still
present until today:
Net debt SEAT PG (mil €)
717
460
3,926
3,635
3,406
3,274
3,082
2,763 2,731 2,703
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
31. Vito Gamberale – Various examples of privatisations in Italy
31
The big privatisations of the 90’s
Service and infrastructure companies – SEAT Pagine Gialle
SEAT PG’s stock trend from the separation to date
Note: no data available before 2003, year of the separation from Telecom Italia Media
0.05
€/sh
32. Vito Gamberale – Various examples of privatisations in Italy
32
In 1999 70% of Autostrade was sold for about 13.5 bil € by the government
(through PPO and tender).
Schemaventotto (led by Edizione Holding) won the tender and purchased 30% of
the company through IRI at about 7.05 €/sh. The market absorbed about 40% at
6.75 €/sh.
This price represented a premium on the market value (part of the assets of
Autostrade were already listed) of 5%.
After three years only (2002), the very same Schemaventotto purchased
(through a vehicle company) the absolute majority with a PPO, at the price
of 10 €/sh, a value 43% higher than what the government obtained.
After another four years (2006), Schemaventotto agreed de facto on the
transfer of Autostrade to Abertis at 25 €/sh, which was over 250% more than
the price IRI paid.
The big privatisations of the 90’s
Service and infrastructure companies – Autostrade
Autostrade is still a solid company today.
33. Vito Gamberale – Various examples of privatisations in Italy
33
The big privatisations of the 90’s
Service and infrastructure companies – Autostrade
Autostrade/Atlantia’s stock trend after privatisation
11.6
€/sh
34. Vito Gamberale – Various examples of privatisations in Italy
34
Aeroporti di Roma (ADR) was born in 1974 to manage Rome’s airport network. It is an exclusive
concessionaire for the management of the Fiumicino and Ciampino Airports.
ADR is owned by IRI, which controls it through Fintecna and Cofiri an started its privatisation process
in 1999.
After two tender phases, the network, made of Gemina (42%), Falck (31%), Italpetroli (16%) and
Impregilo (11%), won, and acquired 51.2% of the ADR shares for 1,327 mil € through the
Leonardo company, which then acquired 45% more of the ADR shares through a PPO of
1,000 mil €.
The price Leonardo paid, however, included a dividend of about 1,519 mil €, achieved by the
company in 2001 thanks to a new debt (over 1,200 mil €). Overall, therefore, Leonardo obtained
96% of ADR for 808 mil € (carrying value).
In 2002 the Australian Macquarie Fund purchased about 44.68% of ADR’s assets from Leonardo for
480 mil € (1,704 mil € for 100%), which means the Fund had almost a 30% premium of the
carrying value.
In 2007 Gemina1
became Leonardo’s only shareholder, purchasing 31% of assets from the Falck
Group for 220 mil €, 16% from Italpetroli for 83 mil € and 11% from Impregilo for 63 mil €.
In 2007 Gemina purchased 44.7% of ADR’s assets from Macquarie for 1,237 mil € ─ 2.5 times the
price paid by Macquarie just five years before and over three times Leonardo’s net expenses during
the privatisation process!
The big privatisations of the 90’s
Service and infrastructure companies – ADR
1 After numerous ownership changes, Gemina’s current relative majority (about 35%) is held by Sintonia (reporting to Edizione Holding),
either directly or through its subsidiary Investimenti e Infrastrutture SpA.
35. Vito Gamberale – Various examples of privatisations in Italy
35
The big privatisations of the 90’s
Service and infrastructure companies – ADR
ADR net debt (mil €)
Macquarie
acquisition
Macquarie sale
Falck, Italpetroli,
Impregilo sale
In 10 years ADR changed ownership three times and accumulated a net debt that,
today, still amounts to about 1,250 mil € (NFP/EBITDA > 4.5x!), after paying capital
gains to the shareholders (and 190 mil € dividends between 2000 and 2007)!
This determined a very slow growth in the decade following privatisation (CAGR
proceeds 2001-2010: +3%, basically ceasing all investments).
Privatisation
After
privatisation,
debt grows to
reach over 1.6 bil
€
A big debt and
regulatory
uncertainty led to a
progressive
worsening of the
credit risk
0,09
1.63 1.58
1.65 1.60
1.49
1.35 1.32
1.22
1.32
1.24
1.16
0,00
0,20
0,40
0,60
0,80
1,00
1,20
1,40
1,60
1,80
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
36. Vito Gamberale – Various examples of privatisations in Italy
36
Aside from providing cash resources to public finance, the objective of the
privatisations through direct selling to private entities, was to assign the
infrastructure management to private bodies able to promote their development
and manage the assets efficiently.
The privatisation of services and infrastructures, however, developed under
constraints and haste, which favoured the assignment of the assets on a family-
like basis.
The idea was initially good and understandable.
The involved «families», however, had to manage companies that were outside
their core business, with high cash flows, typical of infrastructures.
Therefore, despite their previous success stories in their respective sectors (very
often completely different from infrastructures), these entrepreneurs were led to
operate an asset management with more of a financial than industrial
approach, neglecting development and investment. None of these privatised
companies, with private entities, experienced development.
The big privatisations in the 90’s
Service and infrastructure companies
37. Vito Gamberale – Various examples of privatisations in Italy
37
Notes on privatisations in Europe
38. Vito Gamberale – Various examples of privatisations in Italy
38
From the beginning of the 20th century until the late 70s, all major Western
European countries were characterised by a growing public intervention, with the
objective to promote the recovery and innovate the production and infrastructure
system.
Up until the World War II aftermath, numerous «nationalisations» of
companies took place, allowing the government to play an entrepreneurial
role during this time.
The economic crisis of the 70’s and 80’s, especially with the oil shock, accounted
for a rise in the deficit and public debt in almost all countries and, consequently,
the governments’ need to cash in, which grew stronger in the 90’s, in view of the
adoption of the Euro.
Ronald Reagan and, more particularly Margaret Thatcher’s policies in the USA
and in the UK provided the ideological basis for the de-nationalisation of
companies.
Besides the economic recovery, the objective was to achieve more efficiency
within the companies, as well as freedom of choice for consumers, the breaking
free of government monopolies, financial market development and creation of a
widespread shared ownership.
Notes on privatisations in Europe
39. Vito Gamberale – Various examples of privatisations in Italy
39
Despite having common origins, the «privatisation phase» was characterised
by very different features and timelines from country to country, based on
their specific economic patterns, as well as historical and political background.
The main differences occurred in:
time: Great Britain was responsible for most privatisation in the 80’s; in France this
process was of particular focus in the 2000s; in Italy, Germany and Spain, because of
different reasons (economic/political crisis, reunification, post-dictatorship crisis
after Franco), the privatisation process was stronger during the 90’s
strategy: some countries (UK) chose a complete drop out of governmental presence
in the economy, others (France, Germany) chose to keep a strong state presence in
the privatised companies anyway
social/economic background: most countries (UK, France, Germany) aimed for a
widespread shared ownership of the privatised companies (creating big public
companies), others (Italy) focused, at least in part, on a reference industrial investor.
The strong economic, political and historical differences of the privatisation
processes in various countries makes it hard to identify a reference pattern, a
benchmark.
Notes on privatisations in Europe
40. Vito Gamberale – Various examples of privatisations in Italy
40
Box 1 – Privatisation processes in the main European countries (80s and 90s)
see further down for summary table
UK: the first country to start an important privatisation plan in 1980 during the Thatcher Government,
and the first country operating with a more radical approach. The plan’s main objectives were: a drive
towards competition (to improve the quality of products and services and to reduce costs), the creation of
a widespread shared ownership, the reduction of the state demand. The English privatisations are, for
the most part, total and are mainly achieved through listing at the stock exchange (with the objective
to achieve a widespread shared ownership and, at the same time, to develop the financial markets). In
some cases, for a few years, the government held a «golden share» with veto power on some strategic
decisions. However, it also acted as a regulator of the liberalised markets, through the creation of strong
sector authorities (eg. Ofcom, Ofwat, etc.)
Germany: the German capitalistic approach, based on cross-holdings between banks and companies
(that had therefore shared stocks and governance rights among each other), has always determined a
reduced government presence in the economy and the absence of nationalisation plans. Consequently, the
privatisations focused mainly on: 1) the former East German companies after the reunification, and 2) a
few big state monopolies (Deutsche Tekelom, Deutsche Post, Lufthansa, Volkswagen). In the first
scenario, the privatisations were accomplished through direct sales to private entrepreneurs (small to
medium size companies) or to institutional investors from West Germany. In the second scenario, the
listing at the stock exchange was favoured, with the government keeping some shares (still the case today
with Volkswagen, Deutsche Telekom, Deutsche Post). The revenues from the privatisations, mainly
achieved during the 90’s, are completely used to balance the public accounts after the reunification.
Notes on privatisations in Europe
41. Vito Gamberale – Various examples of privatisations in Italy
41
France: in France there were massive nationalisation plans, which lasted for over 50 year until 1982,
and resulted in a strong public presence in finance. In 1986, the Chirac government started to change
directions to enter a first phase of privatisation. The French privatisation pattern, probably the most
complex, included:
the creation of a «selected set» of about 10-20 shareholders (mainly institutional investors
chosen by the government), each with a stake ranging from 0.24 to 5%. Such shareholders had
privileged rights, with a price increase of the shares of 2-10%. The objective of the «selected set»
was to ensure a stable shared ownership and avoid hostile takeover bids
the sales of 10% shares to the privatised companies’ employees
a 20% cap on participation for foreign partners (to ensure that the company stayed under national
control)
a «golden share» («action specifique») for the government, with a 5-year duration
the quotation at the stock exchange of the remaining shares.
This process allowed the creation of important public companies that firmly remained under French
control. Unlike other European countries, France’s privatisation process progressed also in the
2000’s (actually, with a current intensification or privatisation).
Spain: in Spain, most companies had been nationalised during the Franco dictatorship through
INI (a national body developed on the Italian IRI model). Privatisations started in 1986 with the
Gonzales government and, at first some important assets were sold to foreigners (e.g. SEAT to
Volkswagen). At a later stage, especially throughout the 90’s, the biggest national companies
(Endesa, Repsol, and Telefonica) are privatised through quotation at the stock exchange, with the
objective to create public companies with widespread shared ownership.
Notes on privatisations in Europe
42. Vito Gamberale – Various examples of privatisations in Italy
42
Notes on privatisations in Europe
Country Strategy Prevailing sale
modality
Prevailing share
ownership
Main operations (80s
and 90s)
Total revenues
(bil USD)
Italy Full privatisation
(with the exception of
ENEL and ENI)
Direct sales Private entities
(important families,
industrial investors)
Lanerossi, ILVA, ENI, ENEL,
Telecom Italia, Autostrade,
SME, AdR
107
UK Full privatisation
(with control by the
authorities)
Quotation Widespread shared
ownership
BP, British Gas, British
Airways, BAA, British
Telecom
112
Germany Full privatisation
(Eastern German
companies) and
partial privatisations
(big state companies)
Direct salses
(Eastern Germany
companies) and
quotation (big
state comanies)
Private entities
(Eastern German
companies),
widespread
/institutional shared
ownership (big
national companies),
government
8,000 Eastern Germany
companies, Volkswagen,
Deutsche Post, Deutsche
Postbank, Deutsche Telekom,
Lufthansa.
70
France Partial privatisation Quotation «Selected set»
(institutional
investors),
employees, savers,
government
Saint-Gobain, Paribas, BNP,
Renault, France Telecom,
Autoroutes du Sud de la
France.
59
Spain Full privatisation Sales to foreigners
/ quotation
Widespread shared
ownership /
institutional investors
SEAT, Endesa, Repsol,
Telefonica
46
Privatisation in the main European countries – 80s and 90s
43. Vito Gamberale – Various examples of privatisations in Italy
43
Notes on privatisations in Europe
Although, as previously discussed, it is not possible to identify a reference
benchmark because of the many differences among the countries, there still were
some common marks in the privatisation processes analysed above:
all countries, with exception of Italy, had the objective to transform the privatised
companies into real public companies, characterised by a widespread shared
ownership and an ability to compete on the international markets (which, in those
years, were starting to go «global»)
consequently, in all countries, with exception of Italy, the privatisation of big public
assets were achieved mainly through quotation at the stock exchange
another consequence of this process was the creation, or strengthening of institutional
investors (investment funds, merchant banks, insurance companies, pension funds,
etc.), a circumstance that was not found in Italy, or was very limited
finally, the traditionally «stronger» governments (especially Germany and
France) were inclined to keep relevant shares in strategic assets. The English
government, although aiming at full privatisations, took on a regulatory role through
the authorities. In this case too, Italy was an exception: despite choosing full
privatisations, the role of the authorities was not as strong as in Great Britain.
Italy, despite obtaining many profits from privatisation, was not able to create
«national champions» in the various sectors (with the exception of the energy sector),
able to drive an internal development in the country and to achieve international
relevance.
44. Vito Gamberale – Various examples of privatisations in Italy
44
F2i as a privatisation tool of the local assets
45. Vito Gamberale – Various examples of privatisations in Italy
45
F2i as a privatisation tool of the local assets
Just like it happened for the central government in the past, the local bodies
today are facing critical financial conditions:
high debt, more and more frequently used to cover the current expenditure, not just for
investments
decreasing transfers from the government
more and more binding restrictions for the internal stability pact.
This situation accounts for extreme difficulties to collect funds, especially for
the infrastructure and local public service sectors, in order to:
participate in the capital increase of the subsidiaries, necessary to ensure the
development and efficiency of the services delivered to citizens
further develop existing infrastructures and finance the construction of new ones, which
are more and more needed by the territory.
46. Vito Gamberale – Various examples of privatisations in Italy
46
F2i as a privatisation tool of the local assets
In addition, some of the companies that manage local public services are now
also facing a series of obstacles, typical for their public nature:
plurality of partners (often without a reference stakeholder) with quite differentiated
problems, that affect each other
lack of financial resources (connected to the public shareholders’ problems), necessary to
accomplish important investments to maintain and develop the managed assets
fragmentation of the sectors in which they operate, caused by «parochial» policies that
are not integrated in a national strategy.
Even the biggest listed companies – those born from the aggregation process of
the past years (A2A, Hera, IREN, ACEA, etc.) – still present internal local
contrasting positions of merged entities. This limits their development
possibilities and their managing field of action.
47. Vito Gamberale – Various examples of privatisations in Italy
47
F2i as a privatisation tool of the local assets
Financial problems, management difficulties and an infrastructure deficit
inevitably imply a reduction of the local bodies’ presence in the participating
companies’ assets.
This need was already recognised by the «Ronchi Decree», which identified a solution for the
introduction of a private partner in the companies managing the assets.
The effects of the Ronchi Decree however were then cancelled by the referendum in June 2011,
whose objective – contrary to the European dispositions – was to maintain the public management of
local services.
Although the referendum was won, the lack of funds still determines the need for local bodies to
resort to private funds.
Recently the debate on a new phase of privatisations was reopened; such privatisations would in
fact focus on the local bodies.
48. Vito Gamberale – Various examples of privatisations in Italy
48
The phase of «big privatisations», which focused on assets managed by big
central bodies in particular (IRI, ENI, ENEL, etc.), had minor effects on
local public services.
Despite listing the minority shares of various former municipalised companies at
the stock exchange (HERA, A2A, ACEA, IREN, Acegas, etc.), they are still
under the fierce control of local bodies.
This contributed to the fact that sectors – such as the water system, waste
management and gas distribution – were, and still are, very fragmented.
In Italy, it was not possible to create big «national champions» for these sectors
(such as, for example, E.On in Germany, Veolia in France, EdF, GdF, etc.),
which would have been able to compete at an international level in the long term.
F2i as a privatisation tool of the local assets
Local bodies participate in over 5,500 companies (with a total turnover
of 43 bil € and 240,000 employees), for a total estimated value of about
30-35 bil €! (Source: Privatization Barometer – Mattei Foundation).
49. Vito Gamberale – Various examples of privatisations in Italy
49
F2i as a privatisation tool of the local assets
The key topics brought out through this analysis include…
the lights and shadows of the privatisation phase in the 90’s
the need for a new privatisation phase, as a solution to the high debts of
local bodies
… we therefore came up with the idea of F2i, a private yet institutional fund
that can:
aggregate the existing infrastructures into industries, creating «national
champions» for each separated segment
use funds from this asset management to allow their development
act as a partner for local bodies in the privatisation process of their
assets.
50. Vito Gamberale – Various examples of privatisations in Italy
50
F2i as a privatisation tool of the local assets
Thanks to a fundraising of 1,852 mil €, F2i is the biggest fund operating in Italy
and counts among the biggest country infrastructure funds worldwide.
F2i was created as a private, yet institutional tool by high standing sponsors,
who contributed to the establishment of the Fund’s solid reputation:
the government, through GDP
major Italian banks (Unicredit, Intesa SanPaolo)
an important international bank (Merrill Lynch – BoA)
the networks of former banking foundations and private welfare funds
life insurance companies and pension funds.
51. Vito Gamberale – Various examples of privatisations in Italy
51
F2i as a privatisation tool of the local assets
Following its mission and the institutional nature of its
investors, F2i aims for long-term participation with an
industrial understanding.
F2i investors (per category)
Categories (Fund I) N. Invest. Subscribed
amount
% on the
Fund
Banks 7 593 M€ 32.02%
Welfare funds 13 487 M€ 26.30%
Foundations 26 439 M€ 23.70%
Insurances 4 175 M€ 9.45%
Public financial institutions (CDP) 1 150 M€ 8.10%
Management SGR / Sponsors 1 8 M€ 0.43%
Total 52 1,852 M€ 100.00%
52. Vito Gamberale – Various examples of privatisations in Italy
52
F2i as a privatisation tool of the local assets
F2i has a planned extension of 15 years, 4 of which (+2 potentially) are
dedicated to investments, the others to management.
F2i virtually exhausted its resources well before the earliest deadline of the
investment period!
Feb Mar Apr Mag Giu Lug Ago Set Ott Nov Dic Gen Feb Mar Apr Mag Giu Lug Ago Set Ott Nov Dic
2013 2015
Fund IPO
Investment period extension
2010 2011 2012 20142007 2008 2009
Project /
Authorization
Fund Raising Investment period
Management
and disposal
3ƒ
53.5 mil €
Today
6ƒ
invest.
294.9 mil €
First Closing
1.55 bil €
Final
Closing
1,852 bil €
First dividend
26 mil € (Fund management costs)
1ƒ 2ƒ
.
2.0 mil €(1)
5ƒ
.
29.6 mil €(1)
4ƒ
50.1 mil €
7ƒ
invest.
237.5 mil €
Gen Feb Mar Apr Mag Giu Lug Ago Set Ott Nov Dic
2008
Gen Feb Mar Apr Mag Giu Lug Ago Set Ott Nov Dic
2009
Gen Feb Mar Apr Mag Giu Lug Ago Set Ott Nov Dic
2010
8ƒ
100.2 mil €
9ƒ
.
73.8 mil €
10ƒ
.
182.0 mil €
+ 28.8 mil €(2)
11ƒ
.
67.7 mil €
(1)
(2) Moon and Link projects about to be competed
Gen Feb Mar Apr Mag Giu Lug Ago Set Ott Nov Dic
2011
13ƒ
invest.
389 mil €
12ƒ
invest.
64.8 mil €
invest.Invest. invest invest. invest. invest invest invest invest
Dismissed participations
1,679 mil € (90% of the fundraising)
~ 1,653 miil € +
79,4 mil €
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
First closing
of the
fundraising,
beginn of
investments
53. Vito Gamberale – Various examples of privatisations in Italy
1,621.8 mil € (96.6%)
25.6 mil € (1.5%)
53
F2i as a privatisation tool of the local assets
1,679.1 mil €
GAS
RENEWABLES
HIGHWAYS
WATER
AIRPORT
TLC
Porject approved but
still not completed
Includes the
participation in
software design
Subject to the
procedure of other
partners’ preemption
Committed
436.5 mil € (26.0%)
237.5 mil € (14.1%)
129.5 mil € (7.7%)
489.2 mil € (29.1%)
210.8 mil € (12.6%)
118.3 mil € (7.1%)
Investments currently in the portfolio
+ Dismissions
= COMMITTED TOTAL
+ Fund management costs
75% 85.2%
100%
100%
100% 40%
15.7%
100%
49.8%
100% 70%
29.8%
87,5% 61.4%
26.3%
7.4%
Infracis Srl
SEA
Autostrada BS PD
Progetti Milano e
Brescia
2iGas Srl
G6 Rete Gas SpA
F2i Rete Idrica
Italiana SpA
F2i Energie
Rinnovabili Srl
F2i
Reti Italia Srl
GESAC SpA
Metroweb SpA
F2i Aeroporti
SpA
F2i TLC SpA
ENEL
Rete Gas SpA
Mediterranea
delle Acque SpA
Alerion
CleanPower SpA
HFV SpA
31.7 mil € (1.9%)
54. Vito Gamberale – Various examples of privatisations in Italy
54
F2i as a privatisation tool of the local assets
2i Gas (ex E.On Rete)
Objective: to represent an important independent manager of gas distribution
networks and to act as an aggregating entity in a currently aggregating sector.
Objective: to develop two independent entities with authoritative
shareholders, managers and management. Today the renewable energy sector
is afflicted by contradicting regulations that create confusion for the
operating partners!
Objective: to access the closed sector of highways as a reference stakeholder
for companies with extremely fragmented public shareholders.
Objective: to create a «national champion» in a sector crucial to Italy, which
requires great investments to modernise the existing plants.
Objective: to create an aggregation focus in a strongly fragmented sector,
characterised by a worrisome predominance, mainly publicly-owned, with no
specific strategy.
ENEL Rete Gas
Alerion
HFV
Infracis
Mediterranea
delle Acque
GESAC
SEA
G6 Rete Gas
Objective: to create a development focus in the new generation of the TLC
network sector to accelerate the technological development of infrastructures
in big Italian cities.
Metroweb
Progetti Moon e Link
Autostrada BS-PD
GAS
RENEWABLES
HIGHWAYS
WATER
AIRPORTS
TLC
F2i acts as a true «public company»: each project is developed with the
objective to create an industry within a specific sector, fostering cooperation
among subsidiaries and the integration of the managed infrastructure
networks.
55. Vito Gamberale – Various examples of privatisations in Italy
55
F2i as a privatisation tool of the local assets
Within four years, F2i managed to offer a new business model for
infrastructures in Italy by creating a structured group of companies and
company industries, each representing a benchmark in their respective
sector.
The companies where F2i holds the share majority or plays an important
role in their governance, registered in 20111
:
aggregated turnover: 1,559 mil €
EBITDA: 657 mil € (EBITDA margin: 42%)
Employees: about 8,000
investments: 438 mil € (67% EBITDA)
1
Aggregated closing data 2011. Referred to: ERG, 2i Gas, G6 Rete, Alerion CleanPower, HFV, Mediterranea
delle Acque, GESAC, SEA, Metroweb
56. Vito Gamberale – Various examples of privatisations in Italy
E.On Rete Gas
Gesac
G6 Rete Gas
Metroweb
56
F2i as a privatisation tool of the local assets
Thanks to F2i, important assets managed by foreign companies have
returned, together with their cash flows, under Italian control:
57. Vito Gamberale – Various examples of privatisations in Italy
57
o participate in the aquisition of brownfield assets sold by public bodies too, to support its own
development. As an important innovation, selling institutional parties are often granted an earn-
out, a protection against future valorisations above specific limits
o involve both national and local financial systems in management companies, the same as real
international public companies
o ensure an industrial management, aiming for effectiveness and the companies’ managing
development. F2i aims to obtain the majority of stakes in the subsidiaries to be able to take
action on the management
o maintain a balanced financial management, and avoid the impoverishment of the companies
through exaggerated debts and extraordinary maxi-dividends
o promote development, thanks to reinvestment of a great part of the cash flows generated by
strengthened assets and managed networks
o foster aggregation processes in sectors characterised by great fragmentation and high national
and European development potential
o ensure management enhancement of the subsidiaries by involving the management in corporate
development and personal improvement projects.
F2i can represent the ideal partner for public entities in the privatisation
process. Indeed, F2i can:
F2i as a privatisation tool of the local assets
58. Vito Gamberale – Various examples of privatisations in Italy
58
F2i as a privatisation tool of the local assets
The effectivness of F2i’s body of work is proven by the fact that the Fund
virtually exhausted its resources well before the earliest deadline of the
investment period.
This happened even though F2i operated with extreme caution in order to
avoid hasty operations in a time of great uncertainty and a progressively
worsening global crisis.
This achievement is leading F2i to launch a new Fund that will
allow its work to progress further.
59. Vito Gamberale – Various examples of privatisations in Italy
59
F2i as a privatisation tool of the local assets
The results achieved by F2i, almost «spontaneously», led its institutional
partner, CDP, to reproduce this experience in other key sectors of the
Italian economy.
F2i has therefore become a model tool for economic policy!
Two important investment vehicles followed the footsteps of the F2i
model:
the Italian Investment Fund (target 3 bil €): addressing SMEs, with the
objective to strengthen their assets and increase their size
the Italian Strategic Fund (target 7 bil €): addressing bigger companies, of
strategic importance for Italy, with the objective to increase their
competitiveness at an international level and keep them under Italian control.
In addition, a new infrastructure fund, based on the F2i model, is
currently being planned for investments in new projects (greenfield).
60. Vito Gamberale – Various examples of privatisations in Italy
60
Conclusions
61. Vito Gamberale – Various examples of privatisations in Italy
61
During the 90’s, Italy was the
leading European country for the
accomplishment of privatisations
(over 100 bil USD, 70% of which
was generated by the dismissals
described above)...
Conclusions
…even though the impact of
privatisation on the public debt
was limited.
Proceeds from the privatisations of the main European
countries in 1991 and 2000 (bil USD)
Average: 0.75%
Revenue incidence from privatisations on public debt amount
Source: Privatisation Barometer – Mattei Foundation
103
67
55 54
43
-
20
40
60
80
100
120
Italy Germany UK France Spain
0.00%
0.50%
1.00%
1.50%
2.00%
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
62. Vito Gamberale – Various examples of privatisations in Italy
62
Overall, the big privatisation transitions during the 90’s in Italy obtained
different results, based on the different strategies applied.
Privatisations through quotation at the stock exchange, besides representing
an economical success for the government, transformed the former public
bodies in public companies, improving their efficiency and turning them into
primary companies able to compete at an international level.
However, such results were obtained by pushing on the stock exchange (at least in the
ENEL case), with high collocation prices that could not always benefit investors
(among whom were many small financiers).
The privatisations through direct sales to private entities, on the other hand:
were generally successful in the manufacturing sector, in particular thanks to the
takeover by entrepreneurs operating in the same sector of the acquired companies
seemed to promote the private entities themselves, in the manufacturing sector,
leading them to start a «hit and run» game and risking – as was the case for Telecom
and almost happened for Autostrade – the foreign control of assets that were
strategic for Italy.
Conclusions
63. Vito Gamberale – Various examples of privatisations in Italy
63
for the manufacturing sector, favour the operating leaders of the same core
businesses
for infrastructures/services, it is better to favour full stock exchange quotations or
shared ownerships of «public companies», such as F2i
set lock-up bonds (for at least 5-7 years)
always introduce the concept of «earn-out» to favour the public vendor in case of
re-selling the company within 5-10 years
set up bindings to prevent selling the company to buyers who would place an
exceeding acquisition debt on the company itself.
Conclusions
A couple of rules taught by big privatisations:
Based on these assumptions, the topic of formerly-municipalised
companies – especially in the water sector, gas distribution and
WTE – should be urgently addressed.
64. Vito Gamberale – Various examples of privatisations in Italy
64
During the 90’s, privatisation focused mostly on assets managed by big central
entities (indeed IRI, ENI, ENEL) and, only marginally, on local public services
(especially through quotation at the stock exchange of minority shares of
subsidiaries).
Just like it happened to the government in the past, the local entities today are
facing critical conditions, because of financial and management problems, and
should, therefore, take an interest in completing the privatisation process of
formerly-municipalised companies.
When considering the experience of the «big privatisation» phase, it is
necessary to identify the right private partner to make the process flourish.
F2i was also born with the objective to provide a response to this need, which
is a long-term and financially-solid partner, private and institutional at the
same time, able to respect public interests and roles.
F2i can be exactly considered as Italy’s answer to that type of public
company, available in other countries through the best financial institutions.
Conclusions