Italy court urged to uphold Impregilo fund release

ROME, April 16 Thu Apr 16, 2009 9:20am EDT

ROME, April 16 (Reuters) - A state prosecutor urged Italy's supreme court on Thursday to uphold a decision to release 750 million euros ($987.1 million) in frozen payments to builder Impregilo SpA IPGI.MI, a court source said.

Italy's substitute general prosecutor for the supreme court argued that it should reject a motion filed by Naples prosecutors to block the release, the source said on condition of anonymity.

The prosecutor's position adds weight to the possibility that the funds will be freed. The supreme court is expected to release a decision on Thursday evening.

The 750 million euros were seized in 2007 as part of an investigation into waste management contracts near Naples, in southern Italy.

Shares in Impregilo, Italy's biggest builder by market value, were up 3.18 percent at 2.27 euros at 1216 GMT. The DJ Stoxx construction and building materials gauge .SXOP was up 2.25 percent.

(Reporting by Giselda Vagnoni, writing by Ian Simpson; editing by Elaine Hardcastle)

($1=.7598 Euro)

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