👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

Italy's Leonardo says in talks with Germany's Hensoldt on possible JV

Published 02/29/2024, 01:44 PM
Updated 03/01/2024, 05:31 AM
© Reuters. FILE PHOTO: Flags of German defense supplier Hensoldt AG are pictured at Frankfurt stock exchange during Hensoldt's initial public offering (IPO) in Frankfurt, Germany, September 25, 2020. REUTERS/Ralph Orlowski/File Photo
LDOF
-
HAGG
-

ROME/MUNICH (Reuters) - Leonardo and Germany's Hensoldt are discussing a possible joint venture, the chief executive of the Italian defence group said on Thursday, adding that he hoped to have "news" in the coming months.

Leonardo is a shareholder in the German military sensor maker, alongside the German government which holds a 25% stake. However, it did not take part in a December capital raising which reduced its previous 25% stake in Hensoldt.

"We are now restarting the analysis of a joint venture. We are discussing with (Hensoldt's) new management what we can do together, the table is open," Roberto Cingolani told a post-results call.

Cingolani added that he met the head of Hensoldt a few weeks ago and that he hoped to have some "news in the coming months".

Last year, outgoing Hensoldt CEO Thomas Mueller had raised the possibility of his company taking over Leonardo's defence electronics division, but Leonardo's then boss Alessandro Profumo dismissed the comments as "misleading".

A Hensoldt spokesperson said on Friday that future Chief Executive Oliver Doerre had met with Cingolani in Rome and there is a list of possible cooperation projects between the two.

"However, there are no concrete plans for a joint venture," said the spokesperson.

Leonardo's decision not to take part in Hensoldt's capital increase fuelled speculation of a lack of interest in collaboration between the two groups.

© Reuters. FILE PHOTO: Flags of German defense supplier Hensoldt AG are pictured at Frankfurt stock exchange during Hensoldt's initial public offering (IPO) in Frankfurt, Germany, September 25, 2020. REUTERS/Ralph Orlowski/File Photo

Cingolani said Leonardo had never opposed the recapitalisation, and the German government had appreciated the Italian group's transparent position.

(This story has been refiled to correct the dateline)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.