Italian defence IPO faces choppier waters

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MILAN, Oct 5 (Reuters Breakingviews) – Italian defence group Leonardo (LDOF.MI) could also be relaunching its DRS unit onto U.S. public markets at a tough time. A list may occur this month or subsequent, Reuters reported on Monday. Boss Alessandro Profumo’s earlier try and promote a 22% stake within the naval techniques and satellite tv for pc communication division foundered in March regardless of booming fairness markets learn extra . The proposed valuation – $3.2 billion on the prime of its value vary – was arguably too aggressive for some traders.

DRS’s strong first half gives some reassurance. And regardless of the botched U.S. retreat from Afghanistan, tensions within the South China Sea and different scorching geopolitical spots stay. But market circumstances have hardly improved since March, with considerations about rising inflation and a Chinese actual property disaster clouding the outlook. The U.S. preliminary public providing market can also be overcrowded. To woo traders now, Leonardo could must trim its value sights. (By Lisa Jucca)

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Editing by Ed Cropley and Oliver Taslic

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A soldier fires a machine gun off the coast of Ashdod, Israel, November 8, 2016. REUTERS/Amir Cohen