Franco-German KNDS offers to buy Leonardo's OTO Melara, Wass units - report

ROME, Nov 12 (Reuters) - Franco-German KMW+Nexter Defence Systems (KNDS) has lodged a bid with Leonardo to buy two units - OTO Melara and Wass - from the Italian state-controlled defence group, Italian newspaper la Repubblica reported on Friday.

The offer is being discussed at a government level, and could come up in talks between French President Emmanuel Macron and Italian Prime Minister Mario Draghi when they meet later on Friday in Paris, the daily reported.

As part of the bid, KNDS has offered to include Italy in a tank project, called the Main Ground Combat System (MGCS) and more popularly known as the "tank of the future".

KNDS has also given assurances that it would maintain employment levels at OTO Melara and Wass, which make naval guns and torpedoes respectively, the report added.

Leonardo and KNDS were not immediately available for comment.

The proposed deal is part of a broader plan to build closer ties between Paris, Berlin and Rome with regards to European defence systems, La Reppublica said.

Leonardo's chief executive recently declined to comment on the possible disposal of OTO Melara.

But a source familiar with the matter told Reuters in August that Fincantieri was talking to Leonardo about possibly acquiring the unit, not considered as a core asset by Leonardo but seen as strategic by the Italian shipbuilder.

La Repubblica described the KNDS offer as "more consistent" than Fincantieri's, and said it was worth as much as three times more. (Reporting by Giulia Segreti, editing by Gianluca Semeraro & Simon Cameron-Moore)

Franco-German KNDS offers to buy Leonardo's OTO Melara,...

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