The board of Eni, the Italian oil giant, has approved the €3.8bn ($3.2bn) flotation of Rete Gas Italia, its natural gas subsidiary, before the end of the year in what could be one of the biggest old economy deals of 2001.

Schroder Salomon Smith Barney will be relieved that the initial public offering, one of its biggest-ever European deals, is back on track. In March Vittorio Mincato, ENI's chief executive said that uncertainty surrounding the deregulation of the Italian gas market could force postponement of the IPO.