Finmeccanica Stock Falls As Investors Signal Concerns On CEO Change

Finmeccanica Stock Falls As Investors Signal Concerns On CEO Change

The stock price of Finmeccanica SpA (BIT:FNC), the Italian state-controlled defense contractor surrounded by controversy, declined more than 5% to €6.35 per share in Italy on Tuesday, an indication the shareholders are concerned with the leadership change in the company announced by Prime Minister Matteo Renzi.

Play Quizzes 4

According to Bloomberg, Mauro Moretti was recommended by Finance Ministry of Italy to replace Alessandro Pansa as chief executive officer of Finmeccanica SpA (BIT:FNC). Moretti is the current head of Italy’s railway company. The Finance Ministry also recommended Gianni De Gennaro as chairman and announced its nominees to the board of directors of the company.

This Too Value Fund Explains Why Turkey Is Ripe For Investment Right Now

TurkeyThe Talas Turkey Value Fund returned 9.5% net for the first quarter on a concentrated portfolio in which 93% of its capital is invested in 14 holdings. The MSCI Turkey Index returned 13.1% for the first quarter, while the MSCI All-Country ex-USA was down 5.4%. Background of the Talas Turkey Value Fund Since its inception Read More

Pansa became the CEO of the company after the termination of two predecessors last year. He receives favorable views from the investors of the company.

‘Radical re-thinking’

In a note to investors, analysts at Medioblanca opined that the concerns of investors are more operational and the CEO changes could lead to “radical rethinking” of plans to sell non-military assets. The analysts also suggested that it could also result in write-downs of assets in an effort to clean up its balance sheet.

Finmeccanica corruption investigations

Finmeccanica SpA (BIT:FNC) is a global player in the aeronautics and defense industry. The Italian government controls a 30% stake in the company. It is confronted with a series of corruption investigations including the bribery charge against its former CEO Giuseppe Orsi and former head of its Augusta Westland unit Bruno Spagnolini in connection with the sale of helicopters in India. Both executives were arrested last year.

Italy nominates new CEO of Eni and Enel

The Italian government also nominated two chief executive officers for state controlled companies Eni SpA (ADR) (NYSE:E) (BIT:ENI) and Enel S.p.A. (BIT:ENEL). The shares of both companies were also negatively affected by the leadership changes.

The stock price of Eni SpA (ADR) (NYSE:E) (BIT:ENI) dropped 0.38% to €18.39 and the shares of Enel S.p.A. (BIT:ENEL) fell 2.39% to €3.92 per share.

Prime Minister Rezi appointed Claudio Descalsi as CEO of Eni SpA and Francesco Starace as CEO of Enel S.p.A. (BIT:ENEL), according to Bloomberg based on information from a government official who requested anonymity because of internal policy.

The report also indicated that three women were being considered to serve as chairperson for Eni, Enel, and Poste Italiane SpA, the state postal company.  Emma Marcegaglia, former chief of Confindustria, an Italian employers lobby group was nominated to become chairperson of Eni SpA (ADR) (NYSE:E) (BIT:ENI). Patricia Griego was recommend for Enel S.p.A. (BIT:ENEL).

Updated on

Marie received her Bachelors Degree in Mass Communication from New Era University. She is a former news writer and program producer for Nation Broadcasting Corporation (NBC-DZAR 1026), a nationwide AM radio station. She was also involved in events management. Marie was also a former Young Ambassador of Goodwill during the 26th Ship for Southeast Asian Youth Program (SSEAYP). She loves to read, travel and take photographs. She considers gardening a therapy.
Previous article Twitter Hires Maps Exec Away From Google
Next article The Heartbleed Glitch: It’s Deja Vu All Over Again

No posts to display