MILAN (Reuters) -Italian truck maker Iveco said on Tuesday it was in "ongoing, advanced" talks with different parties for two separate deals regarding its defence business and the rest of the company.
Iveco Engaged in Advanced Negotiations for Defence and Company Deals
Iveco's Strategic Negotiations
MILAN (Reuters) -Italian truck maker Iveco said on Tuesday it was in "ongoing, advanced" talks with different parties for two separate deals regarding its defence business and the rest of the company.
"The board of directors of the company is in the process of carefully reviewing and evaluating all aspects of these potential transactions," the company said in a statement, without giving further details.
Iveco added its board would keep the market updated in line with applicable laws. Shares in Iveco rose 6.6% by 1250 GMT.
Potential Deals and Market Impact
Two sources close to the matter told Reuters the deals could be announced as early as Wednesday, when Iveco is due to report first half results.
Defence Business Spin-Off
Reuters first reported this month that Exor, the Agnelli investment company which owns a controlling stake in Iveco, was in talks with Tata Motors for the sale of the company. Exor declined to comment.
A third source separately said the possible deal with Tata was "complex" and required Iveco disposing of its defence business first because, as a supplier of the Italian army, the division had to remain in domestic hands.
Offers Received for IDV
Iveco has been working to spin off its IDV defence business, while also exploring a possible sale given interest from potential suitors.
It has received three offers for IDV: from Italian state-controlled defence group Leonardo, which is partnering with Germany's Rheinmetall. Another two, respectively, from Franco-German tank maker KNDS and Czech arms company Czechoslovak Group.
(Reporting by GIulio Piovaccari and Giulia Segreti, editing by Gianluca Semeraro and Valentina Za)
