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FAILED GAMBLE. Blackstone (BX.N) has gained the upper hand in a vexing Italian property fight. RCS MediaGroup (RCSM.MI), publisher of Italy’s best-known daily, Corriere della Sera, has accused the U.S. buyout giant of exploiting its financial difficulties to pay a cheap price for the newspaper’s historic Milan headquarters in 2013. The dispute over the 120 million euro deal prevented Blackstone from flipping the building to German insurer Allianz (ALVG.DE) for more than twice the amount. Yet a Milan arbitration court concluded last week that Blackstone’s purchase had been fair and valid read more .
RCS Chairman Urbano Cairo’s daring legal gamble risks backfiring. Blackstone may now try to resume a U.S. lawsuit in which it seeks 600 million euros in damages. That’s almost 50% more than RCS’s market value before its shares dropped as much as 7% on Monday read more . All in all, it’s bad news for Corriere’s owner. (By Lisa Jucca)
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Earlier in Capital Calls:
Nordic school-builder buyout is teachable moment read more
Boeing gives Ryanair another headache read more
Valuing GoAir’s IPO will be a turbulent exercise read more
Crown regains its swagger in Blackstone rebuff read more
Trains deal goes into high gear read more
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