Finmeccanica chairman resigns amid inquiry

ITALIAN DEFENCE group Finmeccanica SpA said yesterday it had appointed its chief executive, Giuseppe Orsi, as chairman of the group after Pier Francesco Guarguaglini resigned from the position in the wake of a growing corruption probe.

Finmeccanica, part of the Eurofighter consortium alongside EADS and Britain’s BAE Systems, also said Alessandro Pansa had been confirmed as managing director.

The company, which is 32 per cent owned by the state, is involved in a long-running probe centring on accusations of false invoices and slush funds to bribe politicians.

The investigation has emerged as the first big headache involving a company for fledgling Prime Minister Mario Monti, whose government of unelected technocrats took office in November to tackle Italy’s debt crisis.

Mr Guarguaglini, who had been in the job since 2002, had previously resisted calls to step down from the helm of the loss-making company, the second-largest Italian industrial group after car maker Fiat.

Mr Monti had called for a “rapid and responsible” solution to the Finmeccanica problem but said he would not want to interfere directly in its management.

“It’s important to have clarity in such an important moment for Finmeccanica’s leadership,” said Marco Cristofori, an analyst at Centrobanca in Milan, who has a “hold” rating on the stock before the announcement.

Mr Guarguaglini has been chairman since 2002 and kept responsibility over strategy, acquisitions and asset sales and government relations since Mr Orsi’s appointment as chief executive.

The two men have sparred over strategy and relations have been strained since Mr Guarguaglini came under fire after several corruption investigations.

Mr Guarguaglini and his wife Marina Grossi, who is chief executive of Finmeccanica subsidiary Selex Sistemi Integrati, are under investigation as part of the probe. Both deny wrongdoing.

Three people have been arrested on corruption allegations involving state air traffic services group ENAV and Selex Sistemi Integrati. – (Reuters/Bloomberg)