Italian state-controlled industrial holding company Finmeccanica has sold part of its 22% stake in semiconductor manufacturer ST Microelectronics to raise cash to fund its aerospace ambitions.
The sale of a 3.5% stake to a group of institutional investors will raise between $646 million and $696 million for aerospace acquisitions and expansion. Finmeccanica plans to use the money to pay for the entry of its weapons interests into European missile manufacturer MBDA. It must also match its partner BAE's further investment in defence electronics venture AMS in order to retain its 50% stake.
It is also looking for opportunities to purchase new activities, starting with the Italian avionics business of Marconi, and is negotiating with Telecom Italia to buy the satellite technology firm Telespazio. It has still to complete the acquisition of a 75% stake in Aermacchi. Debts will also be reduced.
At the same time the Italian defence and engineering group has resumed talks with EADS to form the European Military Aircraft Company (EMAC) joint venture in the aerospace sector. Talks stalled in mid-September in the wake of the crisis in the airline industry, which resulted in disputes over the valuation of various businesses.
The talks originally opened last year and had been expected to be concluded before June. However, difficulties over reconciling product rivalry, uncertainties surrounding the top management of Finmeccanica and more recently the 11 September crisis seemed to have meant the end of the merger attempt.
Despite that, a meeting between EADS joint chief executives Philippe Camus and Rainer Hertrich and Finmeccanica president Alberto Lina in Rome appears to have restarted negotiations.
Source: Flight International