Source: MSN
By Giuseppe Fonte and Elvira Pollina
ROME, April 7 (Reuters) – Italy is likely to replace Roberto Cingolani as chief executive of defence group Leonardo, two sources close to the matter told Reuters, in what would be a major change in a round of appointments at state-controlled companies.
The replacement would come at a sensitive time for Leonardo as it competes for growing business in the defence and aerospace sector, as governments worldwide increase military spending against the backdrop of the war in Ukraine and escalating conflict in the Middle East.
Italy, which owns a little more than 30% of Leonardo through the Economy Ministry, must file a slate of board candidates by April 13.
Shares in Leonardo have soared by 780% since Russia invaded Ukraine in 2022, but Prime Minister Giorgia Meloni is now pushing for a leadership change at the company, one of the sources said without providing further details.
The second source said that a leading candidate for the top job at Leonardo is Lorenzo Mariani, a former executive at the defence and aerospace conglomerate and now managing director for Italy at missile maker MBDA, which Airbus, BAE Systems, and Leonardo jointly own.
The same person added that government officials would discuss the matter later on Tuesday.
Leonardo and MBDA declined to comment on Tuesday.
Italy is preparing to announce multiple appointments at state-backed companies such as Leonardo, utility Enel, and energy major Eni as executives’ contracts expire in the next weeks.
News of the possible change of leadership comes only weeks after Cingolani announced a five-year strategic plan, including investment in computing, artificial intelligence, and cybersecurity, and a multi-layered air defence system known as the Michelangelo Dome.
Sources had told Reuters in February that the government was leaning towards granting Cingolani a second three-year term.
Under Cingolani, Leonardo has invested in digitalisation, defence electronics, and interconnected platforms, shifting from traditional defence to advanced technology, a move Cingolani described as “from bullets to bytes”.
Leonardo shares were down almost 8% on reports of the potential CEO change.
(Reporting by Giuseppe Fonte in Rome and Elvira Pollina in Milan. Additional reporting by Giulia Segreti. Editing by David Goodman)
