Bloomberg News

Finmeccanica Said to Appoint Mediobanca to Advise on Transport

September 28, 2011

Sept. 28 (Bloomberg) -- Finmeccanica SpA, Italy’s biggest defense company, hired Mediobanca SpA as an adviser on strategic options for its transportation units, two people familiar with the situation said.

Mediobanca, the country’s biggest publicly traded investment bank, will look into options for Finmeccanica businesses including AnsaldoBreda, a fully owned train-making unit, and mass-transit specialist Ansaldo STS SpA, said the people, who declined to be named because the matter is private.

Several companies have expressed interest in the units, one of the people said. Rome-based Finmeccanica declined to comment.

Chief Executive Officer Giuseppe Orsi has said the state- controlled company may sell AnsaldoBreda, which is unprofitable, if it isn’t able to restructure it. Finmeccanica gets about 10 percent of its revenue from transportation businesses.

The company may be close to a deal to sell AnsaldoBreda to General Electric Co., which is also interested in Ansaldo STS, newspaper Il Tirreno reported Sept. 14, citing Alessio Bartolomei, a local official from Pistoia.

Alstom SA is also interested in AnsaldoBreda, seeking an acquisition or partnership, Il Sole 24 Ore reported Sept. 16, citing a letter from the French company’s Chief Executive Officer Patrick Kron to Finmeccanica.

Orsi said Sept. 20 that there were no parties in advanced talks to buy AnsaldoBreda and that the unit’s newly appointed CEO, Maurizio Manfellotto, is working on an updated business plan.

--Editors: Jerrold Colten, Dan Liefgreen

To contact the reporters on this story: Marco Bertacche in Milan at mbertacche@bloomberg.net; Sonia Sirletti in Milan at ssirletti@bloomberg.net

To contact the editor responsible for this story: Angela Cullen at acullen8@bloomberg.net


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