Prime Minister Mario Monti’s government scrapped some of its special takeover defenses in former state-owned companies to try to end an infraction procedure brought by the European Commission over Italy’s so- called golden share.
The changes adopted at a Cabinet meeting in Rome today will limit the use of the golden share to block takeovers in key industries such as defense, energy, telecommunications and transportation. Italy still has golden shares in former state- owned companies such as Telecom Italia SpA, oil producer Eni SpA (ENI) and defense contractor Finmeccanica SpA. (FNC)
The European Union has repeatedly urged Italy to modify its law on golden shares to comply with the region’s rules. The government hopes today’s overhaul will lead to the closing of an infraction procedure opened in 2009, according to the statement.
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