Italian Prime Minister Giorgia Meloni’s government proposed Flavio Cattaneo as the new chief executive officer of energy company Enel SpA, resolving a spat within her governing coalition.
(Bloomberg) — Italian Prime Minister Giorgia Meloni’s government proposed Flavio Cattaneo as the new chief executive officer of energy company Enel SpA, resolving a spat within her governing coalition.
Cattaneo, currently executive vice president at rail company Italo SpA and previously a top executive at Telecom Italia SpA and Terna SpA, was proposed to replace Francesco Starace, who led the state-controlled utility for three terms, according to a finance ministry statement. Veteran executive Paolo Scaroni was proposed as chairman.
Scaroni, who’s served as chairman at soccer club AC Milan and as an executive at Rothschild, is a close ally of former Premier Silvio Berlusconi. As Eni SpA’s CEO he worked to deepen ties with Russia’s Gazprom.
Meloni reportedly had initially backed Terna chief Stefano Donnarumma for the post at Enel, but ultimately the candidate favored by League leader Matteo Salvini and other coalition parties won out.
The government also proposed former Energy Minister Roberto Cingolani to be CEO at defense company Leonardo SpA, replacing Alessandro Profumo. Cingolani served as minister during Mario Draghi’s government. Prior to that he was Leonardo’s chief technology and innovation officer.
Claudio Descalzi was confirmed as Meloni’s choice to continue leading oil company Eni, a widely expected move after the executive played a key role in helping Italy steer away from dependence on Russian energy in the wake of the invasion of Ukraine. He was named for a fourth consecutive term.
“This is a great result as a consequence of a teamwork,” Meloni said after the announcement. “Their task is to get solid and lasting results in the interest of the nation.”
Meloni’s moves around state-controlled firms could give the government greater sway over key portions of Italy’s economy, and the decisions will be closely scrutinized by investors and analysts. Energy groups Enel and Eni alone combine for a market valuation of about €110 billion ($120 billion) and account for over 18% of the Milan benchmark FTSE MIB index’s capitalization.
All the nominees will have to be confirmed by shareholders at the companies’ annual general meetings in the coming weeks.
–With assistance from Flavia Rotondi and Chiara Albanese.
(Updates with Meloni in seventh paragraph. A previous version corrected spelling of Rothschild.)
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