CashNews.co
What’s going on here?
Italy plans to keep a majority stake in its national rail operator, Ferrovie dello Stato (FS), while considering selling a minority share to outside investors.
What does this mean?
At a recent event in Berlin, FS CEO Stefano Donnarumma confirmed the potential stake saleemphasizing that only a minority share would be offered. This move aims to welcome outside investors without relinquishing state control. Former Terna CEO Donnarumma noted that such a sale might involve a stock market listing but requires a regulatory framework that entices long-term, patient investors. This strategy aligns with Prime Minister Giorgia Meloni’s broader agenda of selling stakes in state-controlled entities, including a recent decree permitting the Treasury to sell up to 14% of the postal service operator Poste Italiane.
Why should I care?
For markets: State assets on the block.
Italy’s potential partial sales of state-controlled entities could attract significant investor interest. With a recent green light to sell a 14% stake in Poste Italiane, markets are anticipating similar moves for FS. This strategy aims to inject capital into these firms while maintaining government oversight, potentially creating attractive opportunities for investors looking at stable, long-term investments.
The bigger picture: Balancing control and investment.
Prime Minister Giorgia Meloni’s government is carefully navigating between retaining control of key national assets and inviting private investment to boost economic growth. By selling minority stakes, Italy hopes to modernize its infrastructure and services without sacrificing state influence, a move that could set precedents for other European nations juggling public and private interests.