Italy builder Salini decides to go ahead with Astaldi takeover

FILE PHOTO: People work at the construction site of a new residential building on the outskirts of Rome, Italy September 24, 2018. REUTERS/Tony Gentile - Copyright Tony Gentile(Reuters)

By Reuters

Published on 16 July 2019 - 8:04 GMT+2

MILAN (Reuters) - Italy's biggest builder, Salini Impregilo <SALI.MI>, has decided to go ahead with a 225 million euros (202.19 million pounds) takeover of ailing rival Astaldi <AST.MI>, an exercise to be partly funded by Salini raising 600 million euros in fresh capital.

Salini said in a statement issued late on Monday night that its board had decided to go ahead with the plan, which it had already flagged last week, and that the 225 million euros investment would leave it with a controlling stake in Astaldi.

In addition to the 600 million euros in new shares, Salini said the operation would be supported by various lines of credit worth a total of 984 million euros.

(Reporting by Claudia Cristoferi; Editing by Mark Bendeich)