By Elvira Pollina and Giuseppe Fonte MILAN, April 14 (Reuters) - An Amsterdam court rejected on Tuesday a request by Italian state lender Cassa Depositi e Prestiti (CDP) to block the reappointment of
Amsterdam Court Denies CDP Request to Block Milan Bourse CEO's Return
CDP's Legal Challenge and Implications for Euronext
By Elvira Pollina and Giuseppe Fonte
Amsterdam Court Ruling
MILAN, April 14 (Reuters) - An Amsterdam court rejected on Tuesday a request by Italian state lender Cassa Depositi e Prestiti (CDP) to block the reappointment of Fabrizio Testa as chief executive of the Milan Stock Exchange, a ruling seen by Reuters showed.
CDP's Stake and Concerns
CDP holds an 8.1% stake in pan-European exchange operator Euronext, which owns the Milan Stock Exchange, also known as Borsa Italiana. It wants Amsterdam-based Euronext to consider alternative candidates to Testa and to conduct a proper search process.
Testa's Tenure and Reappointment
Testa has been at the helm of Borsa Italiana since 2021 and is expected to be reappointed ahead of a Euronext shareholder meeting scheduled for May 20.
CDP, which is 80% owned by Italy's Treasury, filed a request with an Amsterdam court last month seeking to block the appointment.
It intends to appeal the court's decision, a source close to the matter told Reuters.
Euronext declined to comment.
Background on Euronext and Borsa Italiana
Euronext's Position and CEO Statement
Euronext CEO Stéphane Boujnah said in February that Testa was on course to secure a new term, praising him for his "unprecedented results" in recent years.
Italian Government Concerns
The court case comes amid concerns in Italian government circles that Euronext could scale back its Italian operations and favour listings in France or other markets.
Euronext's Acquisition of Borsa Italiana
Euronext - which operates the Amsterdam, Brussels, Dublin, Lisbon, Milan, Oslo, Athens and Paris exchanges - completed its acquisition of Borsa Italiana in 2021 from London Stock Exchange Group.
Financial Details and Key Stakeholders
The 4.3-billion-euro ($5.1-billion) deal made Italy one of Euronext's biggest trading venues and a key revenue driver.
Italy's largest bank, Intesa Sanpaolo, owns a 1.55% stake in Euronext, while France's Caisse des Depots holds an 8.1% stake, the same as CDP.
($1 = 0.8477 euros)
(Reporting by Elvira Pollina in Milan and Giuseppe Fonte in Rome; Editing by Emelia Sithole-Matarise)
