Leonardo's Chairman on Tuesday dismissed his?comments about a possible merger with Italian shipbuilder Fincantieri as a "light-hearted joke". Stefano Pontecorvo, at a business meeting in Milan on Monday, floated the idea that the two state-controlled companies could merge.

The Italian defence and aerospace group's chair addressed an audience which included Fincantieri executive vice president for operations,?Claudio Cisilino.

In a statement, Pontecorvo said, "I made a joke, clearly in a lighthearted tone, about the possibility of a merger between Leonardo Fincantieri and Leonardo."

He added that the remarks "does not reflect any hypothesis under consideration?and there aren't any formal files or dossiers related to potential industrial operations between these two firms."

Leonardo and Fincantieri collaborate on a number of programmes. However, past discussions about a deeper industrial integration have been stalled due to political issues and divergent business priorities.

(source: Reuters)