By Antonio Coletti, Stefano Sciolla, and Isabella Porchia

The Italian Council of Ministers has approved law decree no. 148 (the Decree), extending the disclosure requirements on stakebuilding in Italian listed companies and the Italian government’s so-called “golden powers”. The government may exercise these powers — veto or special conditions — in connection with extraordinary transactions involving companies conducting business in strategic sectors (such as defence and national security).

The first aspect of the Decree deals with stakebuilding. In addition to the ordinary disclosure requirements regarding significant holdings in Italian listed companies, investors building up stakes equal to or higher than 10%, 20%, or 25% must disclose their intentions for final ownership to the Italian Securities Commission and to the target listed company six months after reaching the relevant percentage.