Finmeccanica to tackle its debts

ITALY'S STATE-owned defence-aerospace giant Finmeccanica has pledged to take radical action to reduce its massive debts through the sale of non-core businesses and the signing of new alliances.

The group's debts swelled to L4,880 billion ($3 billion) in 1995 and, emerging from its annual general meeting in Rome, Finmeccanica identified reduction of this burden as its key objective.

Finmeccanica's myriad aerospace and defence subsidiaries, including Alenia and Agusta, are already in the process of being absorbed within the group (Flight International, 22-28 May).

As part of its refocusing, Finmeccanica has also announced that it is to give up its stake in the Marconi Alenia Communications joint venture with GEC's Italian Marconi subsidiary. Marconi will initially pay L223 billion for another 45%, with a further 5% to follow in 1998. The sale of Alfa Romeo Avio to Fiat, is also confirmed and discussions are said to be well advanced.

Source: Flight International