Italy is poised to name a new chief executive for Leonardo SpA as soon as this week, ending weeks of negotiations over the leadership of the country's largest defense contractor. Alessandro Ercolani of Rheinmetall Italia and Stefano Donnarumma of Ferrovie dello Stato Italiane SpA are among the leading contenders, alongside internal candidates, according to people familiar with the matter.

The decision comes as Prime Minister Giorgia Meloni finalizes appointments at major state-linked companies following a weakened political standing after a referendum defeat last month. The government is using these appointments to project control and reshape leadership at strategic groups. The move is part of a broader overhaul of boards at state-controlled companies whose terms expire this spring.

Claudio Descalzi is set to be confirmed as chief executive officer of Eni SpA, while changes are being considered at several firms including Leonardo. The announcement has been slightly delayed to allow for talks to continue with coalition partners Matteo Salvini's League and Antonio Tajani's Forza Italia. The government has already reappointed Poste Italiane SpA Chief Executive Officer Matteo Del Fante to a fourth term as the group pursues a €10.8 billion bid for full ownership of Telecom Italia SpA.