FINMECCANICA, IS preparing to buy the remaining 20.5% of Italian defence electronics company Fiar, which it does not already own. The purchase will allow Finmeccanica to complete another phase, of its long running restructuring, with Fiar becoming the focus for a new radar and electronics grouping.
Analysts estimate that the outstanding Fiar shares, which are traded on the Milan stock market, could be worth around L50 billion ($30 million). The purchase is expected to go ahead early in 1996.
The aim is to make Fiar the centre of a new division, including the other electronics and avionics operations, which Finmeccanica acquired from failed state-holding company Efim following its collapse two years ago. These include Sma, Officine Galile, Omi and the Agusta systems arm.
Together, the divisions would create an electronics business with sales of around L500 billion. Fiar itself turned in a profit of L7 billion on sales of L143 billion in 1994.
Source: Flight International
