Leonardo weak after negotiations with Knds on Leopard stopped | EUROtoday

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(Il Sole 24 Ore Radiocor) – Leonardo – Finmeccanica weak in Piazza Affari, following the official announcement of the interruption of negotiations with Knds. On Tuesday 11 June, with the inventory market closed, the Italian Defense firm confirmed the rumors already circulated in latest days, i.e. the cease – 6 months after the announcement – to negotiations with Knds (German Krauss-Maffei Wegmann plus French Nexter) to outline a typical configuration for this system Main Battle Tank of the Italian Army and to develop broader industrial collaboration. No motive was given for the choice, however the firm however «confirmed its dedication to offering the Army with a high-performance answer that meets present wants and stays properly positioned for future developments in the direction of the Main Ground Combat System, together with by cooperation with different companions”. The rumors speak of a possible involvement of the German Rheinmetall.

Intermonte: agreement failed due to the lack of involvement of the Italian industry

«The agreement with Knds concerned collaboration for the supply of Leopard 2 tanks to the Italian Army (8.2 billion for the purchase of 271 Leopard2A8 tanks and a further billion for the purchase of Aries chariots by 2037, included in the three-year programmatic document 2023-25)”, recall the analysts of Intermonte (which has an outperform ranking on the inventory with a goal value of twenty-two euros). «The breakdown of the negotiations – they are saying – issues the dearth of settlement on a passable involvement of the Italian business (Leonardo electronics, Oto Melara turret, Iveco Defense hull)».

For Equita, focus can also be on Iveco's Defense enterprise

Equita analysts (purchase with goal value at 23.50 euros) spotlight that «the instances for a potential alliance/three way partnership are lengthening, eradicating a possible catalyst of the fairness story that CEO Cingolani typically spoke about in final months (i.e. the necessity for collaborations at European degree to outline frequent platforms)”. It remains to be clarified, they add, whether this evolution increases Leonardo's interest in Iveco's defense business, as reported by the press in recent days. For Banca Akros, which has a buy rating with a target price of 29 euros on the stock, “the information is marginally unfavourable and apparent” but, given the Government's intentions, “the contracts aren’t but misplaced”.

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https://www.ilsole24ore.com/art/leonardo-debole-stop-trattative-knds-leopard-AGNZ0yW