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Italy wants new CEO at the helm of defence group Leonardo, sources say

Published 15/02/2023, 12:27
© Reuters. FILE PHOTO: Leonardo S.p.A. CEO Alessandro Profumo looks on as he attends a meeting in Rome, Italy, December 7, 2017. REUTERS/Remo Casilli/
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By Angelo Amante and Giuseppe Fonte

ROME (Reuters) - Italy's government is seeking a new chief executive to run defence and aerospace group Leonardo, three sources familiar with the matter said, as Prime Minister Giorgia Meloni's administration stamps its mark on key state-controlled companies.

Former banker Alessandro Profumo, 65, has led Leonardo since 2017 but his mandate expires in May, with the three sources saying a new term looks unlikely because senior figures in Meloni's administration are pushing for an overhaul of the company.

Europe's defence sector has grown in importance since the outbreak of war in Ukraine and Italy's Defence Minister Guido Crosetto previously told Reuters the industry needed to boost its efficiency in light of the new challenges.

Lorenzo Mariani, managing director of European missile maker MBDA in Italy, is among the frontrunners for the Leonardo job, the sources said, adding that Crosetto - a senior figure in Meloni's Brothers of Italy party - considers him a good candidate.

Former Ecological Transition Minister Roberto Cingolani, a technocrat who served under the government of Meloni's predecessor Mario Draghi, has also been shortlisted, two of the sources said, noting he could benefit from his good relationship with Meloni.

Cingolani, who informally advises Meloni on energy policy, previously held the role of chief technology and innovation officer at Leonardo, and rejoined the group at the end of last year. Earlier this month he was also appointed to the board of Italian electrode maker De Nora.

A Leonardo representative did not immediately respond to a request for comment.

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Meloni's government has made it clear that it wants to impose its stamp on key appointments and in January named Riccardo Barbieri as Treasury director general in place of Alessandro Rivera.

Triumph at regional elections in Lazio and Lombardy this week is seen as strengthening the rightist ruling coalition's grip on power, amid cross-party political negotiations over the appointments.

Senior appointments at other major state companies including energy groups Eni and Enel (BIT:ENEI) and bailed out bank MPS will be made in the coming weeks.

Leonardo, around 30% owned by the government, is part of a defence collaboration involving Italy, Britain and Japan to develop by 2035 a next-generation jet fighter combining the British-led Tempest project with Japan's F-X programme.

After reporting a sizeable jump in orders during January-September citing increased demand for defence and security "linked to the geopolitical scenario", Leonardo in November raised its full year 2022 order guidance to more than 16 billion euros.

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