ROME (Reuters) – Two Italian lawmakers have quit the anti-establishment 5-Star Movement, a sign of trouble within the group that swept into parliament for the first time in February with a quarter of the national vote.

The defections come ahead of this weekend’s municipal elections in Sicily, where a regional vote last year catapulted the 5-Star Movement into the national political arena after it captured more than 18 percent of the ballots.

ROME (Reuters) – Italian prime minister-designate Enrico Letta could announce a new government on Saturday and go before parliament to spell out its program early next week, political sources said on Friday.

Letta, deputy leader of the center-left Democratic Party, has been in discussions to iron out remaining differences with Silvio Berlusconi’s People of Freedom (PDL) party following an initial round of talks on Thursday.

ROME (Reuters) – Italian President Giorgio Napolitano on Wednesday asked centre-left politician Enrico Letta to form a new government, signalling the end of a damaging two-month stalemate since elections in the euro zone’s third largest economy in February.

Letta, from the Democratic Party (PD), said he would start talks to form a broad-based coalition on Thursday. It is likely to go to parliament for a vote of confidence by early next week.

ROME (Reuters) – Italian President Giorgio Napolitano was set to name a new premier on Wednesday with Enrico Letta, deputy head of the center-left Democratic Party, and veteran politician Giuliano Amato seen as front runners to head a grand coalition.

The new government, which could take office in a matter of days, would be backed primarily by the rival center-left and center-right groupings, which had hitherto refused to cut a deal following inconclusive elections in late February.

MILAN/ROME, April 23 (Reuters) – Italy’s Finmeccanica
confirmed on Tuesday plans to sell assets as it posted
a net loss of 786 million euro ($1.02 billion) for 2012, mainly
because of a writedown of the value of its U.S. defence
electronics unit DRS.

In the first set of results under its new chief executive,
Alessandro Pansa, the state-owned defence contractor said it
could sell assets to beef up its balance sheet. It forecast a
decline in revenue this year and broadly stable core profit.

ROME (Reuters) – Italy’s center-left backed former prime minister Romano Prodi as candidate for president on Friday, setting up a battle with the center-right alliance of Silvio Berlusconi which has threatened to force new elections if Prodi is elected.

However the choice was immediately rejected by center-right leader Silvio Berlusconi’s camp, which said it was likely to prevent any government being formed and lead to early elections.

ROME/MILAN (Reuters) – Italian defense group Finmeccanica (SIFI.MI: Quote, Profile, Research, Stock Buzz) has delayed publication of its 2012 results after a bribery probe connected with the sale of 12 helicopters to Indian authorities, it said on Thursday.

After a board meeting, Finmeccanica said it had postponed the approval of its full-year accounts from March 12 to a new meeting to be held no later than April 30, to “evaluate the impact of recent economic events on its balance sheet.”

ROME/MILAN (Reuters) – Italian defense group Finmeccanica and Indian officials discussed corruption allegations connected with the purchase of 12 helicopters in a meeting on Thursday that both sides said was positive.

The Indian delegation is in Italy to collect evidence relating to allegations that Finmeccanica paid bribes to win the 560 million euro ($750 million) contract awarded in 2010 to its Anglo-Italian helicopter unit AgustaWestland.

ROME (Reuters) – Senior management at Italy’s state-owned defense group Finmeccanica met Indian officials who are looking into allegations of corruption connected with their government’s purchase of a dozen helicopters.

The meeting was “positive” and will be discussed by Finmeccanica’s board later in the day, the company’s new Chief Executive Officer Alessandro Pansa said on Thursday.

ROME/NEW DELHI (Reuters) – Italy’s Finmeccanica (SIFI.MI: Quote, Profile, Research, Stock Buzz) promoted company insider Alessandro Pansa to run the defense group as CEO after the arrest of its head for alleged bribery led India to suspend a $750-million deal to buy helicopters.

After a hastily convened board meeting in Rome, Finmeccanica said Pansa, the chief operating officer, would step up to ensure management continuity following the arrest in northern Italy on Tuesday of chairman and chief executive Giuseppe Orsi.