Italian oil major Eni to start share buyback worth up to €6bn on Monday

Italian oil major Eni will start a planned share buyback programme worth up to €6 billion ($8 billion) on Monday, the company said.The programme covers about 10 per cent of Eni's share capital.

The move is related to a complex operation to maintain the state’s controlling stake in the company after Rome said last year it would sell 3 per cent of Eni in 2014 to help rein in the country’s massive public debt, the fourth-largest in the world.

The state Treasury holds 4.34 per cent of Eni and state lender Cassa Depositi e Prestiti holds another 25.76 per cent, bringing the state's total holding to 30.1 per cent.

If that stake grew, stock exchange rules would force the government to make a takeover bid for the company, while a smaller holding would bring the government lower dividends. – (Reuters)