Impregilo, Salini agree to work together on contracts
MILAN (Reuters) - Italian construction company Impregilo (IPGI.MI) and peer Salini approved a cooperation deal on Tuesday as a first step towards their merger that could bring extra contracts worth up to 6.4 billion euros ($8.30 billion) by 2017.
Impregilo and Salini said they would look at ways to join forces in tenders by equally sharing benefits and costs of the projects.
Salini took board control of Impregilo in July after months of battling with rival motorway and construction group Gavio, which previously controlled Impregilo.
Salini plans to merge the two companies to forge an Italian construction sector champion. It also wants to sell Impregilo's entire 29 percent stake in Brazilian motorway operator Ecorodovias (ECOR3.SA).
The presence of Pietro Salini, head of the Salini group and CEO of Impregilo, on the boards of both companies has raised concern about a possible conflict of interest. Salini abstained from voting on Tuesday, the statement said.
In a separate statement, Impregilo said it had mandated its top management to sell its non-core assets, which include the Ecorodovias stake and its engineering businesses Fisia.
Impregilo shares closed up 1.8 percent at 3.23 euros before the statements on Tuesday, outpacing the 0.4 percent rise of the Milan blue chip index .FTMIB.
(Reporting by Danilo Masoni. Editing by Jane Merriman)
WASHINGTON - When U.S. regulators adopt the Volcker rule on Tuesday, they will make good on a promise by politicians to rein in banks' ability to gamble with their own money.
SAN FRANCISCO - At Pinterest, the four-year-old online bulletin board service that is valued near $3.8 billion, some 70 percent of the users are female. But the company's board of directors is 100 percent male. | Video
BEIJING/HONG KONG - China reiterated its opposition on Thursday to a European Union plan to limit airline carbon dioxide emissions and called for talks to resolve the issue a day after its major airlines refused to pay any carbon costs under the new law.