September 27, 2017 / 11:15 AM / 6 months ago

France to 'lend' control of STX shipyard to Italy's Fincantieri: source

LYON, France (Reuters) - France and Italy agreed on Wednesday to end their row over an Italian bid for shipbuilding firm STX France, with a deal that gives the buyer, Fincantieri (FCT.MI), effective control without it legally owning a majority, an Italian government source said.

    The deal, struck in talks between French President Emmanuel Macron and Italian Prime Minister Paolo Gentiloni, gives Fincantieri 51 percent of STX, though 1 percent of this holding would be in the form of shares lent by Paris, the source said.

    Paris has a right under the deal to demand back the 1 percent equity stake under certain circumstances, the source said. But it was unclear what would happen with the ownership of STX if it chose to do so.

    Reporting Giselda Vagnoni; Writing by Mark Bendeich; Editing by Valentina Za

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