Salini Impregilo free float could be 35 pct after share sale - source

MILAN, June 8 Sun Jun 8, 2014 9:33am EDT

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MILAN, June 8 (Reuters) - The number of shares of Italy's Salini Impregilo freely traded on the market could amount to 35 percent of the builder's capital after a planned cash call and share placement, a source close to the situation said on Sunday.

The roadshow for the share sale should kick off on June 16, the source added.

In May, Italy's biggest builder said it was evaluating an equity offering to institutional investors to increase its free float and raise money for possible expansion.

The offering would include a portion of newly issued shares worth up to 10 percent of its current share capital plus existing shares held by its biggest investor Salini Costruttori, a family owned company.

Salini Impregilo declined to comment.

In April Salini Impregilo's Chief Financial Officer Massimo Ferrari said Salini Costruttori would reduce its stake in the builder to around 75 percent from 90 percent by the end of the summer.

Such a move would have implied a free float of just 25 percent.

"The stock could re-enter the (Italian) blue-chip FTSE MIB index," the source said. Entering a blue-chip index can be beneficial for a stock since certain funds will buy the shares for their portfolios.

Salini Impregilo was formed in 2013 after Salini took over its largest peer Impregilo. (Reporting by Elisa Anzolin, writing by Stephen Jewkes; Editing by Jon Boyle)

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