Romney Persona Non Grata In Italy For Bain’s Deal Skirting Taxes

by Wall Street Job Report on August 6, 2012

Romney Persona Non Grata in Italy for Bain’s Deal Skirting Taxes Mitt Romney skipped Italy on his swing through Europe. That was probably prudent.

That’s because Bain Capital, under Romney as chief executive officer, made about $1 billion in a leveraged buyout 12 years ago that remains controversial in Italy to this day. Bain was part of a group that bought a telephone-directory company from the Italian government and then sold it about two years later, at the peak of the technology bubble, for about 25 times what it paid.

Bain funneled profits through subsidiaries in Luxembourg, a common corporate strategy for avoiding income taxes in other European countries, according to documents reviewed by Bloomberg News. The buyer, Italy’s biggest telephone company, now has a total market value less than what it paid Bain and other investors for the directory business.

Read the full story at Bloomberg.

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One comment

So, does that make Romney a bad guy? The last I heard it is supposed to be illegal to guarantee any investor that his investment will never lose money. The buyer of the former state-owned telephone directory company, via Bain Capital, is a big boy, just as Bain and the Italian government are. They could lose money or make it, but there are no guarantees. If Bain was smart enough to look for a buyer for the asset at the peak of the dot com bubble and the Italian telephone company was foolish enough to buy it from Bain at that time, what does it say about which had the better business minds?

by Robert DeFazio on August 6, 2012 at 6:56 pm. Reply #

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