Leonardo Shares: The Pact with Avio and the March 3 Vote Change the Game

Dear readers,

If you follow the Italian stock market with a particular interest in the defence and aerospace sector, I know you've been keeping an eye on Leonardo shares. In recent weeks, the stock has shown some volatility, but the real earthquake is brewing on the corporate front, and that's where the game that will set the pace for the coming months is being played. I'm talking about the increasingly tight link between Leonardo and Avio, and the crucial deadline of March 3.

A Pact That Carries Real Weight

Those who know me understand I'm not a fan of needless technicalities, but here we need to get into the numbers. A few days ago, the agreement linking the giant led by Roberto Cingolani with Avio's top management officially came to light. We're talking about a shareholders' agreement that brings together Leonardo, some executives, and the chairman of Avio, representing a significant slice of the voting capital: 21.72% of the voting rights.

This is no minor skirmish. In a company like Avio, the beating heart of European space propulsion, having such a bloc means being able to steer strategic choices, secure appointments, and effectively build an even stronger bridge with the parent company based in Piazza Monte Grappa. For those investing in Leonardo shares, this is a clear signal: the vertical integration game is getting serious. It's not just about supply contracts, but about industrial governance.

Glass Lewis's Take on the Pulse

In this climate, the opinion of those who feel the pulse of corporate governance beat by beat arrives right on cue. Glass Lewis, one of the world's most influential proxy advisory firms, has put its recommendation in black and white ahead of Avio's March 3 assembly. Their advice to shareholders is clear: vote in favour of the proposal for the new board.

Now, seasoned market followers know this: Glass Lewis's opinion is much more than just advice. It's a compass for institutional funds, which often mechanically align with these indications. In other words, the scenario where Leonardo strengthens its influence in Avio has passed the scrutiny of corporate governance "experts." The potential obstacles on paper are thinning out.

Why Those Watching Leonardo Shares Must Stay Alert

Let's try to make sense of this and understand what it all means for the stock's value. The stock market always prices in a narrative, and the narrative taking hold is that of an increasingly cohesive Italian aerospace hub under Leonardo's direction.

• Industrial Synergies: Coordinated management with Avio can lead to efficiencies, streamlined R&D investments, and greater bargaining power in European programmes (from space launchers to missiles).
• Strategic Clarity: Stable and aligned shareholding removes uncertainties that often penalise sector stocks. Fewer rumours, more facts.
• Appeal for Major Funds: Institutional investors love clear-cut situations. A defined control structure makes the stock easier to include in defence and aerospace-focused portfolios.

Of course, one must always factor in the political element. Leonardo isn't just any company; every move is scrutinised closely by Palazzo Chigi and MIMIT. But from this perspective, an industrial strengthening that starts from the ground up (the pact with managers and the chairman) and receives praise from governance best-practice evaluators is precisely the type of move that faces the least resistance.

My Point of View

I've seen dozens of similar operations in twenty years in this line of work. They often end up being all smiles and wine, with enthusiasm fizzling out at the first hurdle. This time, however, the feeling is different. Leonardo's move on Avio is surgical: not a hostile takeover, but a fine stitching together of agreements and industrial vision. And the March 3 appointment will be the first real test.

My prediction? Beyond the raw outcome of the meeting – which I see as largely favouring the board – what matters is the message sent to the market: the group led by Cingolani has a free hand and a clear vision to build the future. For those holding Leonardo shares, this is an excellent reason to hold on tight, and perhaps take advantage of any pullbacks to increase their position.

The game has just begun, but the stakes are already sky-high. Be ready.