Corporate Office Properties Trust (CDP), Italy's national promotional institution, has filed two separate lawsuits in Dutch and Italian courts to prevent the reappointment of Fabrizio Testa as CEO of the Italian Stock Exchange, which is owned by Euronext. This move marks a further escalation in the dispute over governance rights at the Milan bourse.

**Legal Battle Intensifies: From Amsterdam to Milan** Two weeks ago, an Amsterdam court rejected CDP's emergency request to freeze the reappointment process for Testa. CDP has since appealed that ruling and filed a separate lawsuit with a Milan court, seeking to block a shareholder meeting of the Italian Stock Exchange scheduled for April 29 from approving Testa's next three-year term.

CDP, which holds approximately 8.1% of Euronext, is urging the pan-European group to consider alternative candidates to Testa and conduct a proper selection process. Sources indicate that CDP's ultimate goal is to increase its influence within Euronext, paving the way for future leadership of the group by an Italian manager.

**Sovereign Concerns Underlie Governance Dispute** Testa has led the Italian Stock Exchange since 2021, with the CEO of Euronext previously praising his "unprecedented results." However, CDP's opposition comes amid concerns within the Italian government that Euronext may scale back its operations in Italy in favor of listings in France or other markets.

Italian unions have expressed dissatisfaction with the centralization of decision-making under the current management. Unions have announced a four-hour strike at the Italian Stock Exchange in protest, though the action is not directed at Testa personally but rather at worsening working conditions and tensions with Euronext's management.

As part of the 2021 acquisition of the Italian Stock Exchange from London Stock Exchange Group for €4.3 billion, Intesa Sanpaolo also holds a stake in Euronext, while French depository bank Caisse des Dépôts holds an identical 8.1% share.