CDP Initiates Legal Actions Against Reappointment of Milan Stock Exchange CEO
CDP's Legal Challenge and Its Implications for Euronext Governance
By Giuseppe Fonte and Giancarlo Navach
Background of the Legal Dispute
ROME, April 27 (Reuters) - Italy's state lender and equity investor CDP has lodged two legal cases in Dutch and Italian courts to block the reappointment of Fabrizio Testa as chief executive of the Milan Stock Exchange, people familiar with the matter said.
The twin move, which follows a first ruling by an Amsterdam court against CDP in its attempt to block Testa, marks an escalation in a governance spat affecting the Milan bourse, part of pan-European exchange operator Euronext.
Shareholders' Meeting and Union Response
While the Rome‑based state lender seeks to prevent the April 29 Borsa Italiana shareholders' meeting from granting Testa a further three‑year term, Italian trade unions have called a four‑hour strike at Borsa Italiana the following day.
Union Concerns and Worker Protests
The strike is not explicitly against Testa. Workers are protesting against deteriorating working conditions and strained relations with Euronext management, unions told Reuters.
CDP's Stake and Demands
CDP, which holds an 8.1% stake in Euronext, is pushing for the European group to consider alternative candidates to Testa, and conduct a proper process to find them.
Legal Proceedings in Amsterdam and Milan
After a Dutch court this month rejected a request by CDP to freeze Testa's re-appointment, the lender has now lodged an appeal against that ruling in Amsterdam, where Euronext has its registered office, and has opened a separate legal case in Milan with the same aim, the sources said.
Euronext's Position and Testa's Leadership
Euronext declined to comment. Its CEO Stephane Boujnah said in February that Testa was on course to secure a new term, praising him for his "unprecedented results."
Testa has been at the helm of Borsa Italiana since 2021.
Strategic Interests and Italian Influence
CDP is seeking to gain greater influence within Euronext to pave the way for the appointment of an Italian executive to lead the group at a later stage, the sources said.
Concerns Over Italian Market Representation
The legal battle comes amid concerns in Italian government circles that Euronext could scale back its Italian operations and favour listings in France or other markets.
Union Claims on Decision-Making
Italian trade unions say key decisions are taken at Euronext's headquarters in Paris with little or no involvement from Italian staff.
Euronext's Acquisition and Shareholding Structure
Euronext - which operates the Amsterdam, Brussels, Dublin, Lisbon, Milan, Oslo, Athens and Paris exchanges - completed its acquisition of Borsa Italiana in 2021 from the London Stock Exchange Group.
The 4.3-billion-euro ($5.05 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 = 0.8518 euros)
(Editing by Gavin Jones)
