Mar. 11 at 2:34 PM
$RNMBY Rheinmetall down because of delay in Iveco deal. Complete overreaction because of algorithms kicking in..
BERLIN, March 11 (Reuters) - Rheinmetall's (RHM -5,57%) handshake agreement to buy Iveco's (IVG -0,47%) military trucks operation from Italy's Leonardo (LDO -2,08%) is facing a delay, said the CEO of the German defence company, Armin Papperger, during an analyst call on Wednesday.
State-controlled Leonardo agreed last year to buy Iveco's IDV defence unit, a deal that cleared the way for India's Tata Motors to buy the rest of Iveco in a deal valued at 3.8 billion euros.
"The first deal between Iveco and Leonardo had a delay, and then our deal has also a delay," said Papperger, adding that Rheinmetall was in touch with Leonardo weekly on the subject.