Feb. 17 (Bloomberg) -- Finmeccanica SpA gained the most in five months in Milan trading after winning an order valued at an estimated $1 billion from the Israeli air force for combat training jets.
The Italian planemaker’s Alenia Aermacchi unit will provide 30 M346 aircraft, beating an offer from South Korea, the Israeli Ministry of Defense announced yesterday. In return, the Italian government agreed to make purchases from Israeli defense industries for a matching $1 billion.
Finmeccanica rose as much as 11 percent, the sharpest gain since Sept. 14 in intraday trading, and was up 9.4 percent at 3.81 euros at 12:46 p.m.
Finmeccanica was selected over Korea Aerospace Industries Co. in part because of the so-called offset deal, the Isreali government said. The air force also “expressed professional preference for the Italian training jets.” The deal must be approved by the defense minister and the Knesset, Israel’s parliament.
The Rome-based manufacturer, which is controlled by the Italian state, has been increasing sales in fast-growing markets to rely less on the defense budgets of its main buyers, Italy and the U.K. Korea Aerospace, the country’s largest planemaker, was offering its T-50 Golden Eagle jet to Israel.
--Editor: Benedikt Kammel
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