Italian defence group Finmeccanica has denied market rumours that it intends to merge transportation units Ansaldo STS and AnsaldoBreda.
Wednesday’s denial came as it seeks buyers for assets as part of a restructuring.
In November, Finmeccanica said it would sell assets worth 1 billion euros ($1.34 billion) to help cut mounting debt, while forecasting a full-year loss and scrapping its dividend, Reuters reports.
“With reference to (market) rumours of a supposed plan to merge Ansaldo STS and AnsaldoBreda, Finmeccanica states that this option is not being examined or evaluated by the company, nor is it feasible,” it said in a statement.
Finmeccanica has said it is looking for a partner for its railway rolling stock unit AnsaldoBreda, adding it is prepared to consider a request from a potential partner to include rail transport unit Ansaldo STS in any deal.
“There has been a lot of interest in AnsaldoBreda,” a source close to the matter said on Wednesday.
Newspapers have previously named Spain’s CAF and French engineer Alstom as being among those interested in AnsaldoBreda.
Finmeccanica has hired Mediobanca to look into strategic options for its transportation business.
Shares in Finmeccanica have underperformed this year because of the group’s exposure to Italy and defence markets, as well as the disclosure of “structural” problems at two units, including its key aeronautics division.
Finmeccanica shares ended the day down 1.83 percent, against a 0.26 percent fall in the industrial goods and services sector index.
The company, controlled by Italy’s Treasury, has also suffered from involvement in a long-running probe focusing on accusations of false invoices and slush funds, which prompted the resignation of its chairman.
Fitch Ratings said on Wednesday it had downgraded the group to BBB- from BBB, to reflect “the extent of the structural problems concerning certain of Finmeccanica’s businesses, which will lead to substantial restructuring charges and write-offs in 2011.”
The credit rating agency said its negative outlook on the company reflected material risks involved in executing the restructuring plan in a difficult economic environment.
