Shares in Fincantieri fall on capital increase worries
MILAN, Nov 24 (Reuters) - Shares in Fincantieri fell 4.5% hit by the prospect of a possible capital increase, which a source close to the matter said would be necessary if the Italian shipbuilder went ahead with an acquisition it is considering in the defence sector.
Fincantieri and Franco-German KMW+Nexter Defence Systems (KNDS) are both interested in buying Leonardo's OTO Melara and Wass units, several sources have told Reuters.
The two subsidiaries of the Italian defence group - in which the Treasury owns a 30% stake - make naval cannons, tank turrets and torpedoes.
Italian daily Il Messaggero on Wednesday reported Fincantieri had presented a 450 million euro non-binding offer for the units, adding it was considering a 1 billion euro rights issue to finance the deal, a figure roughly equal to its market value.
Fincantieri declined to comment on the report.
While confirming that a capital increase would be necessary if Fincantieri bid for Leonardo's assets, the source gave no indication about its size.
Shares in Fincantieri fell 4.5% by 1355 GMT.
Fincantieri Chief Executive Giuseppe Bono in September told reporters the group did not need a capital increase barring extraordinary operations which, at the time, were not in sight.
Italy's defence, treasury and industry ministers are expected to meet later on Wednesday to discuss the sale of OTO Melara and Wass, a source close to the matter separately said.
Il Messaggero reported that the three ministers could discuss a potential partnership between KNDS and Fincantieri to acquire the Leonardo assets.
KNDS is ready to pay more than 650 million euros for the Leonardo's assets, a third source close to the matter told Reuters after Il Messaggero said KNDS would pay 700 million euros. ($1 = 0.8915 euros) (Reporting by Elisa Anzolin; additional reporting by Francesca Landini, editing by Valentina Za)
