Astaldi - Update on Project Italy

All,

According to recent rumours traded in Italy the CDP and Salini may have arrived at a deal, whereby Pietro Salini has to take significant dilution, but becomes CEO of the combined entity, while the Casa Depositi e Prestiti (CDP) appoints the chairman. 

- The Casa Depositi e Prestiti (CDP) is supportive of a deal that involves CDP injecting E300m of a total of E600m in equity, while E150m are to come from the market. In turn it insists on a strong, shared governance system for the new group. Pietro Salini in turn does agree with dilution, but so far did not want to give up control of the enlarged group. As a result, various options have been discussed, most notably that of a strategic sub-committee on the board, which has raised the ire of the public as non-standard and therefore unpopular and share-price limiting. 

The above rumour appears supported by the events we have commented on in recent days.

Wolfgang