Italy Weighs Bolstering Saipem Management After Profit Warning
Italy Weighs Bolstering Saipem Management After Profit Warning
(Bloomberg) -- Italy’s state-backed lender may push to appoint executives that will join Saipem SpA’s management team after the oil drilling specialist issued a surprise profit warning this week, according to people familiar with the matter.
Cassa Depositi e Prestiti SpA, which together with Eni SpA controls Saipem, is considering whether to propose officials that would work side-by-side with Chief Executive Officer Francesco Caio as he reviews the company’s business plan, the people said, asking not to be identified discussing private plans.
Spokespeople for Cassa Depositi, Eni and Saipem declined to comment.
Saipem is evaluating a capital increase and it could consider an injection of 1 billion euros to 1.5 billion euros ($1.7 billion), people familiar with the matter said on Jan. 31. Discussions are preliminary and no final decision has been taken on whether to opt for the capital increase nor on its potential size, they said.
Caio, 64, was appointed CEO in May 2021 after having served as Saipem’s chairman. He was previously chairman of airline Alitalia and CEO of Poste Italiane SpA. The profit revision followed a backlog review, surprising investors as Caio’s strategic plan announced in October had proposed steps to help renew the company.
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