Finmeccanica says will not incorporate loss-making unit

MILAN Wed Jun 18, 2014 3:50pm EDT

The headquarters of Italian defence and aerospace company Finmeccanica is seen in Rome May 3, 2012.  REUTERS/Max Rossi/Files

The headquarters of Italian defence and aerospace company Finmeccanica is seen in Rome May 3, 2012.

Credit: Reuters/Max Rossi/Files

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MILAN (Reuters) - Italian aerospace and defense group Finmeccanica (SIFI.MI) said on Wednesday it will not incorporate its train-making AnsaldoBreda unit, denying media reports following the appointment of a new chief executive.

The company put the loss-making AnsaldoBreda and its stake in rail technology company Ansaldo STS (STS.MI) up for sale more than two years ago, aiming to cut debt.

Political interference and a series of corruption scandals have delayed the process, triggering a downgrade to junk of the company 3.3 billion euro ($4.5 billion) debt pile.

In April the Italian government appointed Mauro Moretti, former head at state railways Ferrovie dello Stato, as chief executive in place of Alessandro Pansa.

(Reporting by Francesca Landini, editing by David Evans)

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