Finmeccanica shares soar on unit takeover talk
* GE close to Ansalda STS, Ansaldo Breda deal-report
* CEO Orsi has cited GE among potential investors
* Ansaldo STS shrs indicated up 15 pct, Finmeccanica up 6 pct
(Adds details, analyst comment, background)
MILAN, Sept 14 (Reuters) - Shares in Italy rail signalling and system company Ansaldo STS (STS.MI) rose sharply on Wednesday on a newspaper report that General Electric (GE.N) is interested in taking over the Finmeccanica (SIFI.MI) unit.
Rome-based Finmeccanica is studying ways to resolve structural problems at its key aeronautics division and its Ansaldo transport units, after reporting weaker than expected first-half results in July. [ID:nLDE76S1GF]
Finmeccanica Chief Executive Giusepe Orsi said in August he was in talks with potential investors for AnsaldoBreda, citing interest from General Electric (GE.N), Canada's Bombardier (BBDb.TO) and Spain's CAF (CAF.MC).
In an interview with Italian newspaper Il Secolo XIX on Sunday, Orsi said he wanted to strengthen Ansaldo STS and AnsaldoBreda, possibly merging them ahead of a possible sale.
"If AnsaldoBreda and Ansaldo STS were together, it would not be in any case enough because we need to build something bigger to be global players," Orsi told Il Secolo XIX. "We must therefore assess how to increase our critical mass, who can help us do it and how."
Wednesday's sharp Ansaldo STS share rise was attributed by two brokers to a report in regional newspaper Il Tirreno saying a sale agreement with General Electric was close.
Ansaldo did not comment on the report. General Electric said it "never comments on rumours". Finmeccanica could not be immediately reached for comment.
"It would make a lot of sense, but the rumours have been going around for so long that who knows if it's true," a Milan-based analyst said, asking not to be named.
By 0920 GMT shares in Ansaldo STS were suspended, indicated up 15.4 percent, making them the biggest gainers in a flat Milan blue-chip .FTMIB index. Finmeccanica shares were up 6.5 percent.
(Reporting by Stephen Jewkes and Antonella Ciancio; Editing by David Holmes)
((nigel.tutt@thomsonreuters.com)(+39 02 66129723)(Reuters Messaging: nigel.tutt.thomsonreuters.com@reuters.net)) Keywords: ANSALDOSTS/
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