Rome, October 17, 2006 - Shearman & Sterling is advising Italian listed company La Gaiana S.p.A. in connection with its proposed merger with Gabetti Property Solutions S.p.A.  La Gaiana and Gabetti Property Solutions are two of the leading real estate companies listed on the Italian Stock Exchange.  La Gaiana holds a 30% interest in the share capital of Gabetti Property Solutions.

According to the terms of the transaction, La Gaiana will contribute its Property & Trading Development business to a newly incorporated subsidiary and will then proceed with a reverse merger of La Gaiana with and into Gabetti Property Solutions.

The transaction is expected to close by the end of the first half of 2007 subject to regulatory and shareholder approvals and completion of the contribution in kind.  Attorneys include partner Domenico Fanuele (RO-CM/MA) and associate Emanuele Trucco (RO-CM/MA).