September 27, 2017 / 4:16 PM / in 6 months

Fincantieri has option to force France to buy its stake in STX - source

ROME (Reuters) - Italy’s Fincantieri (FCT.MI) has an option to force the French government to buy its stake in STX France should Paris fail to meet a commitment to lend it 1 percent of the shipyard, a government source with knowledge of the matter said.

FILE PHOTO: A view of Fincantieri shipyard is seen in Monfalcone near Trieste, in northest Italy, April 21, 2016. REUTERS/Alessandro Bianchi

France and Italy agreed on Wednesday to end a row over an Italian bid for STX France in a deal that gives Fincantieri effective control of the shipyard without it legally owning a majority, a source said earlier.

    Under the deal Fincantieri would have 50 percent of STX but would be lent a further 1 percent stake by Paris for a period of 12 years.

    According to the government source, Fincantieri has a put option to sell its stake to Paris at a fair price.

    Reporting by Giuseppe Fonte, writing by Stephen Jewkes; editing by Giselda Vagnoni

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