Finmeccanica Delays Decision on DRS Sale

MFoCS systems photo DRS technologies

March 20, 2015 By Tom Kington - Defense News

ROME — After hinting for months that he would consider selling DRS, Finmeccanica CEO Mauro Moretti said on Thursday he was taking stock of the firm's improving results and putting off all decisions until September.

Moretti first suggested last summer he could sell the US electronics unit that Finmeccanica bought in 2008. Then, in January, he told analysts that he would seek a partner to help run the unit, while selling off activity worth €200 million (US $214.6 million), including DRS' Aviation and Logistics, as well as Training Communications and Network solutions units.

At the time, Moretti said DRS' volumes had halved since Finmeccanica bought the firm for $5.2 billion, citing slowing US defense spending.

There were also, he said, "Clear difficulties managing the business effectively as a true domestic player if you are not American."

After finding a partner, Moretti said, "We will look at longer term options." Analysts at the time said the partnership could be a prelude to selling.

But on Thursday, at a meeting with analysts to discuss Finmeccanica's 2014 results, Moretti appeared more upbeat about DRS.

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