Leonardo SpA

OTC Pink - Limited Information:FINMYUnited States

0947 GMT - Fincantieri confirmed it expects to reach a deal to buy Leonardo's Underwater Armaments Systems business at the beginning of 2025, the Italian shipbuilder's management said at a roadshow organized by Equita. The acquisition will allow Fincantieri to speed up its plan to gain share of the underwater business by becoming an integrator of systems and not just a platform provider, Equita analyst Emanuele Gallazzi writes in a note. Fincantieri's managers provided encouraging messages confirming the good momentum of all its divisions, Gallazzi says. The group is working on the launch of several new underwater products for defense, in which several navies have already expressed great interest, the analyst notes. Shares are up 0.5% at 5.77 pounds. (cristina.gallardo@wsj.com)

1300 GMT - Talk of ceasefires in Ukraine and the Middle East could persuade investors to lock in profits, AJ Bell Investment Director Russ Mould says. This is especially true as defense stocks have been strong performers, on average, since the Russian invasion in early 2022. The Kremlin said Wednesday that Russian President Vladimir Putin won't agree to freeze the war in Ukraine along the current front lines. This counters reports that he might be ready to discuss that option with U.S. President-elect Donald Trump. European defense companies Rheinmetall, Leonardo, BAE Systems, Thales and SAAB are all trading down by 1%-2% against a backdrop of headline indices that are generally marginally higher, Mould notes. But he says it will be actions that count. EU nations in particular are likely to remain aware of their obligation to meet defense spending requirements, as members of NATO and facing potential pressure from Trump. (cristina.gallardo@wsj.com)