By Francesca Landini and Giuseppe Fonte
ROME (Reuters) -Italy's Treasury held talks with proxy advisers on Thursday about its strategy for state-controlled Enel (BIT:ENEI), people familiar with the matter said, after criticism over board nominations at Italy's biggest utility.
Earlier this month Prime Minister Giorgia Meloni's administration decided on a board shake-up that would end the term of Francesco Starace who has been CEO since 2014.
Rome proposed Flavio Cattaneo, currently executive vice president of high-speed train operator Italo, to succeed Starace and Paolo Scaroni, a former Enel and Eni CEO, as chairman.
Shareholders, including London-based hedge fund Covalis Capital and Mondrian Investment Partners, complained the board nomination process was opaque and demanded clarification from Rome.
Proxy adviser firms Glass Lewis, ISS and Frontis Governance are expected to issue their voting recommendations next week, ahead of a shareholders' meeting on May 10.
Two sources familiar with the matter told Reuters that Treasury officials held talks on Thursday with Glass Lewis and ISS to clarify the nomination procedures and Rome's vision for Enel.
ISS was not available for comment, while Glass Lewis said it would be inappropriate to comment on discussions with an individual stakeholder.
A Frontis Governance representative said it would talk to Rome's representatives in the coming days.
A Treasury spokesperson confirmed the talks and said engagement with investors was common practice, but did not give details.
Rome, which is Enel's single biggest investor with a 23.6% stake, needs to secure the support of a portion of institutional investors to carry out its plans for the board.
One Enel investor, who asked not to be named, told Reuters they wrote to the Treasury and the Italian government saying they favoured re-electing the current board at next month's shareholder meeting and seeking confirmation the group's strategy would not change, but got no response.
Before the Treasury announced its shake-up plans, several other investors in Enel had told Reuters they wanted a CEO with expertise in renewables and strong international credentials.
With almost 60 Gigawatt (GW) of installed capacity, Enel is one of the biggest players in renewable energy.
($1 = 0.9142 euros)