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Italy's Ansaldo STS looks at small acquisitions - CEO

Published 19/07/2017, 13:18
© Reuters.  Italy's Ansaldo STS looks at small acquisitions - CEO
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MILAN (Reuters) - Italian rail signalling company Ansaldo STS (MI:STS) is looking for small acquisitions to offset a sector slowdown but does not see a quick solution to a battle with activist fund Elliott, its chief executive told Reuters.

Funds led by New York-based Elliott Management, the group's second largest investor, have engaged in a bitter feud with Ansaldo STS's controlling shareholder Hitachi (T:6501) since the Japanese bought the group in November 2015.

CEO Andrew Barr said the tug-of-war with Elliott had hampered the group's decision making but added it needed to press on with business.

"There is still growth in business, but we see that it is slowing down so we are also looking at... small acquisitions," the 44-year old said in an interview late on Tuesday, adding there were not specific countries the group was looking at.

"There is nothing concrete at the moment but we are looking hard across sectors," he said.

Barr, who has been at the helm of the group for just over a year, confirmed its guidance for 2017, with new orders of between 1.5-2 billion euros and revenues between 1.35-1.45 billion euros. He said he would give more details on strategy later this year.

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