Milan prosecutors looking into Hitachi's Ansaldo STS deal - sources
MILAN (Reuters) - Milan prosecutors are looking into Hitachi's agreement to buy a 40 percent stake in Ansaldo STS from Italian defence group Finmeccanica at 9.5 euros per share, two people familiar with the matter said on Thursday.
The move comes after investment funds Amber Capital and Bluebell Partners, both Ansaldo STS shareholders, complained to market watchdog Consob over the pricing of the deal.
The prosecutors' investigation will assess whether there are grounds for believing irregularities such as market rigging or regulatory obstruction occurred, the sources said.
Hitachi launched a 9.5 euro per share mandatory public offer to buy out Ansaldo STS minority shareholders on Jan. 4 after buying the 40 percent stake in the Italian rail-signaling company from Finmeccanica last year at the same price.
But some funds complained that the price paid by Hitachi to Finmeccanica was kept artificially low by overvaluing another asset involved in the deal.
On Wednesday Consob said Hitachi had to raise the offer to 9.899 euros from 9.5 euros per share, extending the offer period to February 19.
The watchdog said Hitachi and state-controlled Finmeccanica had colluded to keep the price of the offer for Ansaldo STS artificially low.
In a statement on Thursday Hitachi rejected allegations of collusive practices over the sale with Finmeccanica, insisting the price was set in full compliance with laws.
"Hitachi reserves the right to assess the grounds for Consob's decision on this matter," Hitachi said.
Finmeccanica could not immediately be reached for comment.
Bluebell Partners, which asked Consob to intervene arguing the bid price should be raised to 15 euros, said it was not happy with the new price set and would not tender its shares.
On Thursday the Italian bourse said just over 4 percent of shares subject to the offer have been tendered.
(Reporting by Emilio Parodi and Stephen Jewkes; editing by Adrian Croft)
