When selling the armaments division from Iveco, the joint venture from Rheinmetall and Leonardo could come into play according to insiders.
The Turin user and military vehicle manufacturer speak to potential buyers such as Leonardo, who could make an offer with his partner Rheinmetall, the Bloomberg news agency reported on Friday, citing the matter. According to Bloomberg, Iveco strives for 1.5 billion euros when the armor division is sold.
In February Iveco announced a possible separation from the armaments business. However, some interested parties were frightened due to high rating expectations, it said from Bloomberg. The good run of armaments shares recently received fresh swing again by the planned billion dollar investments in Germany.
Leonardo and Rheinmetall hold 50 percent of the shares at their joint venture in Rome. The foundation was announced last October. It should manufacture the rifle tanks and combat tanks as well as special vehicles for laying bridges.
UBS lowers Leonardo to ‘neutral’ – raises the target to 50 euros
The major Swiss bank UBS has raised the price target for the Shares of Leonardo from 31 to 50 euros, but the papers are graded after their good run from “Buy” to “neutral”. Analyst Ian Douglas-Pennant increased his operational profit estimate for 2029 in his re-evaluation of the Italian armaments group on Monday. The expert now considers the idiosyncratic investment story to be priced.
The Rheinmetall share temporarily lists 1.11 percent in Xetra trading at EUR 1,319.50, while the Leonardo share in Milan loses 2.81 percent to EUR 44.60.
London / Zurich (dpa-Afx)
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