Finmeccanica shares down on CEO change

AP News
Posted: Apr 15, 2014 5:16 AM

MILAN (AP) — Shares in the Italian state-backed Finmeccanica defense contractor are down sharply after the government announced a new CEO.

Premier Matteo Renzi late Monday named new CEOs for four strategic companies, including oil giant Eni, Enel power company and the Italian postal service, sweeping aside current executives.

Investors signaled concern in early trading Tuesday. Finmeccanica shares dropped 2.7 percent to 6.92 euros ($9.56) on the nomination of Mauro Moretti, currently head of the Italian railway. He replaces Alessandro Pansa, who took over the scandal-plagued firm a year ago following the ouster of two successors.

University Corruption
Walter E. Williams

The government chose insiders at Eni and Enel for the top jobs. Shares in Eni were down 0.5 percent while Enel dropped 1.2 percent, in line with the market.

Shareholders must approve the nominations.