Mike secretly embracing the Italian racket in construction (8)

I believe the answer is:

building

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'construction' is the definition.
(synonyms)

'mike secretly embracing the italian racket' is the wordplay.
'mike secretly' becomes 'bug' (I can't justify this - if you can you should give a lot more credence to this answer).
'embracing' indicates putting letters inside.
'the italian' becomes 'il' (il is italian for the).
'racket' becomes 'din' (I've seen this before).
'il'+'din'='ildin'
'bug' going around 'ildin' is 'BUILDING'.

'in' is the link.

Can you help me to learn more?

(Other definitions for building that I've seen before include "Construction" , "Constructing" , "Structure, edifice" , "Erection" , "Structure with roof and walls" .)

I've seen this clue in The Independent.

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