Iveco Aims for €1.5 Billion in Defence Unit Sale
MILAN (Reuters) - Italian truck-maker Iveco is looking to raise as much as 1.5 billion euros ($1.6 billion) from a sale of its defence unit, Bloomberg reported on Friday, as a projected defence spending surge in Europe stokes interest for military assets.
The Turin-based company last month said it was considering spinning off its IDV defence unit this year to simplify its structure and create greater flexibility for both businesses.
A spin-off would normally lead to a separate bourse listing, but investors have been speculating that Iveco could opt instead for a sale of the unit.
Media reports have mentioned among possible buyers Italian state-controlled defence group Leonardo, Franco-German joint-venture KNDS and UK defence giant BAE Systems.
IDV cooperates with Leonardo on a number of projects including a joint-venture between Leonardo and Germany's Rheinmetall for combat ground vehicles.
The Bloomberg report said Leonardo could bid for IDV with Rheinmetall, adding Iveco was also testing possible private equity interest.
Iveco, which is controlled by Italy's Agnelli family through their investment company Exor, declined to comment.
Milan-listed shares in Iveco closed up 0.5% at 16.45 euros, close to an all-time high of 17.23 euros touched earlier this week. ($1 = 0.9250 euros)
(Reporting by Giulio Piovaccari; Editing by Valentina Za)
