Fincantieri in Talks to Buy Leonardo's Submarine Unit Wass

Italian shipbuilder Fincantieri is in talks with Leonardo to buy the defense group's submarine unit Whitehead Alenia Sistemi Subacquei (Wass), several newspapers reported on Wednesday.

Spokespersons for Fincantieri and Leonardo both declined to comment.

The acquisition would have a value of between 200 and 300 million euros ($217-$326 million), Corriere della Sera and financial daily Il Sole 24 Ore reported.

The move by Fincantieri would be part of the group's broader strategy to grow non-organically and focus more on the defence sector, which currently accounts for less that 25% of its revenues.

The state-controlled shipbuilder is considering a capital increase of some 400 million euros to finance the operation, Il Messaggero said, adding that the shipbuilder is being advised by JPMorgan, Intesa Sanpaolo and Bnp Paribas for the deal.

Milano Finanza newspaper first reported on Saturday that Fincantieri was considering a large acquisition and that it was examining either a recapitalization or the issue of a convertible bond to do so.

Leonardo, also controlled by the Italian state, has been planning to find a buyer for Wass for years, but had put the decision on hold after the beginning of the war in Ukraine. At the time, the group said Wass, along with another unit, OTO Melara, could grow better outside the group.

($1 = 0.9211 euros)

(Reuters - Reporting by Giulia Segreti, editing by Alvise Armellini)