FT : Giorgia Meloni’s European moment comes with a price

Giorgia Meloni’s European moment comes with a price
Italy’s enigmatic leader holds a casting vote this week on two crucial issues for the EU

Volodymyr Zelenskyy had Europe’s leaders arrayed around him on Monday evening, but the one seated at the Ukrainian president’s side — right in the middle of the negotiation — was Italy’s Giorgia Meloni.

In diplomatic choreography, such seating decisions matter: at that dinner in Berlin, discussing the security of Ukraine and the continent, Italy’s leader had been cast as a core European player.

Meloni’s allies inside the EU are hoping she remains one as a high-stakes summit on Thursday looms. Europe’s leaders are wrestling with two crucial decisions to which the enigmatic Italian premier holds a casting vote: the financial viability of Ukraine and the future of EU trade policy.

“Get with the programme; act like a European,” said one senior European diplomat on the message being passed to Meloni. “It’s being made clear that this is where she needs to be.”

Since she took office in October 2022, EU capitals have harboured fears that Meloni — who entered politics as a teenage activist with the postwar neo-fascist movement started by comrades of Benito Mussolini — could break with the bloc’s pro-European consensus on key issues.

But despite her historical Euroscepticism, old friendships with Hungary’s Viktor Orbán and pro-Russian parties in her coalition, Meloni has consistently reverted to a pro-European line at critical moments — and proven herself as one of Zelenskyy’s most staunch supporters.

“We have a decisive week ahead of us . . . that really might determine the EU’s relevance as an international actor,” said a senior German official. “Italy is quite crucial in that respect.”

Meloni is expected to outline her approach to the meetings during a speech and subsequent debate in the Italian parliament on Wednesday.

“Italy’s place in the world was usually taken for granted,” said Stefano Stefanini, Italy’s former ambassador to Nato. “But with Meloni, you can’t take it for granted. She is not strictly bound by the usual guidelines that Italy maintained in foreign policy, especially regarding her relations in Europe.”

Meloni’s first decision is her stance on a European Commission proposal to use frozen Russian sovereign assets to guarantee an EU loan to Ukraine, a lifeline without which it risks financial collapse. Last week, Rome sided with Belgium in expressing serious reservations about the plan and calling for last-minute alternative options to be tabled.

The second is how to vote on the Mercosur agreement, a pact with the South American trade bloc painfully hammered out over the past 25 years that is supposed to be signed this weekend. Meloni’s office has been tight-lipped over whether Rome will vote in favour — securing the required majority — or join France backing a delay that officials say is tantamount to ripping up the deal.

Given EU diplomats cast the issues as “existential” for the union, how Meloni votes could determine her future relations with European allies, just as the Italian premier has sought to leverage her global standing to bolster her image at home.

Officials in Brussels, Rome and other capitals suggest Meloni’s reticence in showing her hand before Thursday’s summit belies her true purpose: to use the threat of opposition to win unrelated concessions from the commission.

Two officials briefed on the discussions between Brussels and Rome said that Italy was seeking additional benefits from the EU’s shared budget, including sops to the country’s farming industry.

Meloni has already tasted success this week in opposing a Brussels consensus. On Tuesday the commission decided to weaken its landmark ban on new combustion engines from 2035 after Italy joined Germany and eastern European countries in demanding a partial rollback. Meloni had previously described the ban as “self-destructive”.

But for Meloni, this week’s decisions will force her to make painful choices of the kind she has typically tried to avoid.

A longtime admirer of Donald Trump, Meloni has cultivated closer bonds with the US president than most of her fellow EU leaders and has been touted by her supporters as a bridge between Washington and Brussels.

But the White House has pushed for Brussels to leave the frozen Russian assets for alternative use in a peace settlement to fund US-aligned investment projects — testing Meloni’s loyalty to Trump.

Nathalie Tocci, director of Rome’s Institute for International Affairs, believes that Meloni will ultimately side with Europe in allowing the asset-backed “reparations loans” to go ahead, provided Belgium is also persuaded.

“By delaying things, by creating confusion, it’s a nod and a wink to Trump,” Tocci said. “But if I were to place my bet, I think that Italy in the end will back down. The costs of being marginalised and ostracised in Europe for her are too high.”

Refusal to countenance the use of the assets for Ukraine, Tocci added, would be “very clearly seen as something acting against Europe’s interests”.

On the Mercosur decision, Meloni is caught between two powerful domestic interest groups.

Italy’s main industry association Confindustria wants the deal approved to boost exports, while Coldiretti, an influential farm lobby, is demanding changes to better safeguard against a feared wave of cheaper Latin American imports.

“The postponement proposed by Macron is absolutely necessary,” said Luigi Pio Scordamaglio, Coldiretti’s director of EU and international policy.

Coldiretti has backing from a well-connected ally: Francesco Lollobrigida, the agriculture minister. Lollobrigida is one of Meloni’s old comrades from the neo-fascist youth movement, and was the longtime partner of the premier’s sister, though the two have now split.

But ultimately Meloni’s biggest calculation is likely to be how her choices will leave her positioned on the global stage, and how that will be perceived by Italian voters. “In being respectable abroad,” Stefanini said, “she gets credibility at home.”

FT : German fintech hits €12.5bn valuation in deal backed by Peter Thiel

German fintech hits €12.5bn valuation in deal backed by Peter Thiel
Trade Republic’s €1.2bn share deal also attracts new backers including Singapore’s wealth fund

Trade Republic is set to become Germany’s most valuable start-up after investors including Peter Thiel’s Founders Fund agreed to back the fintech at a €12.5bn valuation.

Early investors in the Berlin-based group will sell €1.2bn in shares to other backers, including Thiel’s fund and venture capital group Sequoia, according to people familiar with the matter.

New investors including Fidelity, Wellington and Singapore’s sovereign wealth fund GIC joined the shareholder base, alongside European family offices representing the Arnault and Agnelli families, the people said.

The €12.5bn valuation will put Trade Republic ahead of defence technology group Helsing, which raised money in a fundraise led by Spotify founder Daniel Ek’s investment company in June at a €12bn valuation. Trade Republic was valued at about €5bn in its 2022 fund raise.

Often characterised as Europe’s answer to Robinhood because of its low-fee share brokerage business model, the fintech was founded in 2015 and has raised over €1bn from investors over the past decade.

The deal underscores the growing importance of secondary markets for late-stage start-ups, given the difficult market for initial public offerings. After a prolonged downturn in tech listings across Europe, founders, employees and venture capital firms are increasingly turning to secondary sales to cash out of stakes, while new investors use them to build exposure to high-growth private companies.

Trade Republic’s share sale transaction, which also includes existing backers Accel, TCV and Thrive, involved the purchase of shares from early investors like Creandum and Project A, rather than the injection of fresh capital into the company, people familiar with the matter said.

The broker’s rapid expansion has been helped by the popularity of exchange traded funds, which it sells to retail investors. The start-up, which has been profitable for the past two years, has more than 10mn customers and about €150bn in client assets.

The company received a full banking licence in 2023 and has since broadened its product range to include savings accounts, private market investments and a crypto wallet. It operates in several European countries including France, Italy, Spain, the Netherlands and Austria.

The deal comes as policymakers in Germany and elsewhere in Europe increasingly promote private savings and equity investment to address strained public pension systems — a shift that Trade Republic and other investment platforms hope will support their growth.

Trade Republic will be hit when Germany implements an EU ban on “payment for order flow” next year. Until recently, the fintech generated about a third of its revenues from the practice, where market makers pay retail brokers for placing clients’ orders with them.

The remainder of the company’s revenues come from customer trading fees as well as from asset managers paying to sell their products to Trade Republic’s clients.

>>> US After Hours Summary: DBVT +65.9% on positive topline data; ULCC +6.5% on

After Hours Summary: DBVT +65.9% on positive topline data; ULCC +6.5% on Bloomberg report that Spirit Airlines considering merger; WOR -9.2%, LEN -4.5% lower on earnings

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: None.

Companies trading higher in after hours in reaction to news: DBVT +65.9% (topline results from Phase 3 VITESSE Trial), REPX +6.6% (authorizes new $100 mln share repurchase program), ULCC +6.5% (Spirit Airlines considering merger with ULCC amid restructuring, according to Bloomberg), NRDS +1.9% (authorizes $50 mln increase to it share repurchase program), NFLX +1.6% (WBD set to reject PSKY bid in favor of NFLX deal, according to WSJ), SLDB +1.4% (HHS officially adds Dechenne muscular dystrophy to RUSP), ZIM +0.4% (reaches deal with activist shareholders)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: PLCE -29.3%, WOR -9.2% (also to acquire LSI Group), LEN -4.5%

Companies trading lower in after hours in reaction to news: SSP -3.4% (SSP says SBGI proposal is not in the best interests of the company), INBX -2% (updates on the INBRX-106 program), WBD -1.2% (WBD set to reject PSKY bid in favor of NFLX deal, according to WSJ; also Kushner-backed Affinity exits the WBD takeover race, according to Bloomberg), PSKY -1.1% (WBD set to reject PSKY bid in favor of NFLX deal, according to WSJ), COHR -1% (stock offering by selling shareholders), DRS -0.7% (achieves milestone with first space-based test of data transport), CPNG -0.4% (discloses cybersecurity event), GRBK -0.3% (authorizes new $150 mln share repurchase program), PLTR -0.2% (Accenture and Palantir expand parnetship), HY -0.2% (CFO to resign)

WSJ : Warner Preparing to Tell Shareholders to Reject Paramount Offer

Warner Preparing to Tell Shareholders to Reject Paramount Offer
Company to recommend existing Netflix deal as soon as Wednesday

Warner Bros. Discovery WBD -2.51%decrease; red down pointing triangle is preparing to tell its shareholders to reject Paramount’s PSKY -0.75%decrease; red down pointing triangle latest offer as soon as Wednesday, people familiar with the matter say, and plans to recommend they support its existing deal with Netflix NFLX 0.62%increase; green up pointing triangle instead.

That would leave Paramount and its chief executive, David Ellison, to decide whether to sweeten its offer.

Warner’s shares have been trading close to $30, suggesting investors expect Paramount to up its offer. Netflix had agreed to pay $27.75 per share in cash-and-stock for Warner’s studios and HBO Max streaming business, while Paramount had offered $30 cash per share for the entire company.

Paramount’s tender offer is set to expire on Jan. 8, so the company could wait until then to decide to disclose an improved bid.

FT : Medline seeks to raise up to $7bn in 2025’s biggest Wall Street IPO

Medline seeks to raise up to $7bn in 2025’s biggest Wall Street IPO
Upsized deal to test investor appetite for new listings at end of choppy year

Private equity-owned medical supply group Medline Industries is weighing an offering of up to $7bn in an upsized share sale on Tuesday, in a signal of investor interest in what is expected to be the biggest IPO of 2025.

At $30 per share, the top of its marketed range, Medline was originally planning to raise about $5.4bn, but the company is discussing raising as much as $7bn, according to people briefed on the talks, though no final decisions have been made. A company representative did not immediately respond to a request for comment.

That would eclipse the $5.3bn raised by Chinese battery maker Contemporary Amperex Technology in May. Medline’s deal is also set to rank as the biggest private equity-backed IPO of all time. Medline plans to price its IPO on Tuesday evening and begin trading on the Nasdaq under the ticker MDLN on Wednesday.

The offering has been closely watched on Wall Street as a gauge of the health of the $4tn private equity industry and whether businesses affected by US President Donald Trump’s tariffs attract investor interest on Wall Street.

Medline’s products are made in tariff-hit regions such as Asia, but its leading position as a supplier of branded medical equipment such as surgical gloves and wheelchairs has appealed to investors, who like its growth prospects and see the business as insulated from changes in the broader economy.

Blackstone, Carlyle and Hellman & Friedman’s $34bn acquisition of a majority stake in Medline in 2021 was at the time the biggest leveraged buyout since the financial crisis.


But PE firms have in recent years struggled to sell assets and return cash to their investors, making Medline’s long-awaited IPO a significant test of whether the industry can successfully reap profits from its biggest deals.

The company, which sells hundreds of thousands of medical supplies used by large hospitals, had planned to go public early in 2025 but delayed those plans after Trump’s tariffs triggered waves of volatility across global financial markets. Many of Medline’s medical products are sourced or manufactured in China and other tariff-affected countries, including Vietnam, Japan and Mexico.

The IPO market’s revival in recent months following a multiyear downturn in new listing activity has provided the trio of PE groups with a chance to begin realising cash from their investments for large gains.

The groups would have roughly doubled their combined $17bn equity investment if Medline’s shares price at the midpoint of their marketed range, said a person briefed on the matter. However, they will not be selling stock as part of the IPO, which will raise billions in cash for Medline to cut its nearly $17bn debt pile.

Founded in 1966, Medline reported $977mn in net income on $20.6bn in revenue over the nine months to September 27, up from $911mn on $18.7bn a year earlier.

Many of the biggest companies to go public in the US this year have struggled after listing. Design software maker Figma surged on its market debut in July, when it was valued at about $60bn. Its shares have since fallen almost 70 per cent.  

WWD : Sources Say a Pool of Investors to Join L Catterton in Etro, Namesake Fami

Sources Say a Pool of Investors to Join L Catterton in Etro, Namesake Family to Exit Company
A banking source said the deal will be signed and made official on Thursday and will see Rams Global, Mathias Facchini, who helms Swinger International and is the owner of the Genny brand, and SRI Group invest in Etro.

MILAN — It’s taken a year, but sources say Etro has found a new pool of investors.

In December 2024, Rothschild was given a mandate to seek an investor in the Etro company, and a well-placed banking source said the deal will be signed and made official on Thursday. Speculation about a sale has been circulating on and off for years.

As per the agreement, the Turkish Rams Global is said to buy the Etro family’s stake, leading to the founders’ exit.

L Catterton acquired a majority stake in July 2021, but sources say Mathias Facchini, who helms Swinger International and is the owner of the Genny brand, and SRI Group will buy a 15 percent stake through a single vehicle. SRI Group is chaired by entrepreneur Giulio Gallazzi and is a multinational independent M&A corporate finance consultancy and proprietary private equity investments company founded in 2001.

Etro had no comment on Tuesday.

Sources believe Rams, which is a major real estate firm, is keen to further develop the Etro Residences, leveraging the brand’s home collection, a cornerstone and significant business for the Milan-based label.

Rams Global is no stranger for Etro. In October last year, chief executive officer Fabrizio Cardini unveiled Etro’s first residential project in a partnership with the firm to design the interiors of the Tower Rams Beyond in Istanbul. It was followed by another residential project in Phuket, by Amal Development in collaboration with The One Atelier.

L Catterton invested in Etro with the aim of growing the Italian fashion brand’s customer base, expanding into new categories, enhancing its digital presence and driving global expansion, with a focus on the opportunities offered by Asia.

Financial sources close to the operation at the time pegged the value of the deal at 500 million euros for a 60 percent stake.

Founder Gerolamo Etro, known as Gimmo, was appointed chairman of the company, which was established in 1968 as a textile firm and subsequently expanded into women’s and menswear and other products.

Etro’s ready-to-wear and accessories collections are designed by creative director Marco De Vincenzo.

The Etro family left their roles within the company shortly after the acquisition. The members involved included siblings Veronica, who was the creative director for the women’s collections; Kean, men’s creative director; Ippolito, who oversaw strategic management, and Jacopo, who was in charge of the home line.

The brand is widely known for its iconic paisley motif, bold patterns inspired by travel and precious fabrics.

Since his arrival at Etro from Dolce & Gabbana shortly after L Catterton’s acquisition, Cardinali has inked licenses for eyewear with Safilo; for fragrances and home scent collections with Coty Inc., the first beauty license for the Italian house, and for Etro Kids with manufacturing specialist Simonetta.