Generali - INA

Generali - Ina Game of chess

Sometimes, reading about or listening to the evaluation of a company, a group, a take-over, a TOB and/or a POFS, it's as to be in front of the behaviour of that kind of physicians whom, after having required and achieved any kind of tests, introduces the corresponding data into a computer so a sophisticated software outputs both diagnosis and therapies.
This way, “mutatis mutandis” it happens to get the evaluation of an enterprise that is by introducing balance data into a computer that will compare them with the so-called “basic” ones.
The Generali has promoted a POFS over Ina and here's the newspapers plenty of disquisition about the economic returns and the value of the aggregate that must support choices, take-overs and the defence of the two Companies.
“Synergies” are enounced, superimposition, summation of proceeds and incomes and cost reductions, but - to see it better - they are only a set of opinions founding often over theoretical models.
They do not remind that the “theorems” cannot be applied “sic et sempliciter” to single operations, but they must be calibrated to the specific features of any party to a contract. Who does not have either the less idea of the number of the “modules” on force in a company and/or a Bank?
Who does not know the diversified number of the contracts undersigned with the policy holders and/or clients? Who does not have the less idea of how much it is complex, articled and long the integration of a reality into another even only by the mere formal and bureaucratic aspect?.
So to make an example, it can be reminded that still in the shareholders' meeting of Banca Intesa on August 17th, the Managing Director Salvatori has confirmed the troubles to harmonise the management of the clients' stocks between Cariplo and Intesa, so that it still endures disservice and complaints even after months. Notwithstanding, the stock management is maybe the less articled knot supporting the philosophy and the strategy of the Intesa Group.
The big manoeuvres of the financing strategists have ruined the very best enterprises in “mergers” that looked logic.
Therefore it appears shareable at all what Giorgio Petroni wrote in “MF” on 17th ult. in an article entitled “Concentrations, a groundless myth “.
The Motta case, the Alemagna and the Pavesi ones, if reconstructed out of the rhetoric of the specific circumstance and pertaining to the “historical” reality, must be a classic text to study at the Bocconi University.
All that provided, surely “experts “ will go on supplying technical opinions about the advantages that could come to the insurance activity of the Generali from taking-over the Ina and/or from the merger of Alleanza, that is from the meting between Ina and S. Paolo - IMI.
Frankly it must be recognised that between Generali and Ina / S. Paolo - IMI it is in course a game of chess having as the “stake” the “power” and facing who wants more and who defends all it has.
The TOB of the Generali over INA has been immediately presented as the challenge of Cuccia to the Agnelli, that is of Mediobanca against Fiat or, still alternatively, as the clash between the “traditional” power of Turin and “the innovative” Lombard entrepreneurs.
The hostility against the project showed by Umberto Agnelli has been underlined as the “reaction” of whom had already suffered the “affront” of the Olivetti 's attack to Telecom.
The Agnelli with the IFIL did not lift a finger to defend the Telecom from the TOB of Olivetti. They limited themselves to make Bernabè confident about future, they did it with a “rewarded” advice and a position at the Board of Directors at the Fiat.
The sale of the Telecom shares has been for the IFIL an unexpected “business” allowing a large capital gain bringing the 1999 balance to a profit of full respect.
Anything but a defeat!
Today in the S. Paolo, source MF on August 26th, they own a very moderate quota (4,4%) few higher than that owned by the CARIPLO (2,8%) and lower than the Santander's (6,9%) and MPS's (6, 4%) while the referring shareholder is the Compagnia S. Paolo (16,16%).
As you can immediately tell, their weight over the management and decisions is anything but determining.
Within the Board of Directors of the S.Paolo - IMI, on the other hand, IFIL (Agnelli) and Santander are a contained minority.
The Agnelli are instead present in a relevant way in the Banca di Roma, wherein their 8% and their friendship with the Libyans of the Libyan Foreign ARAB BANK is determining, as well as the activity of the “Roma Vita” is for them. The Toro (having the 50% of shares) may not record its increments out of that relationship with Bancassicurazione.
On the Generali's bridge (MF Source on15/9) facing a 16,19% held by Mediobanca and Banca d'Italia, there are Euralux (4,76%), Bankers Trust (2,45%) Chase Manhattan Bank (2,4%) Commerzbank (growing from 2,5 to 5%).
So where's the current Italian character? It's “touching” looking at insurers, bankers and financiers as Cuccia, Desiata and others privileging “national” feelings to the logic of power and money peculiar to them. What's important is that the media “puff up “ and “people” believe it.

Leadership Medica^®