Shares in Ansaldo STS drop as GE sees no room for deal

MILAN, April 7 Mon Apr 7, 2014 3:29am EDT

MILAN, April 7 (Reuters) - Shares in Italy's Ansaldo STS were suspended limit-down after a fall of more than 9 percent in early trading on Monday after U.S. conglomerate General Electric pulled out from a race to buy the rail signalling company.

GE Europe President and CEO Nani Beccalli-Falco said on Friday he did not see room for a deal to buy Ansaldo, which Finmeccanica has put up for sale to cut debt and focus on its core aerospace and defence businesses.

By 0721 GMT the stock had resumed trading and was down 3.5 percent at 8.1 euros. The broader Milan index was down 1 percent. (Reporting by Danilo Masoni, editing by Isla Binnie)

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