Italy airs worries over BAE/Eurosystems venture

PINO MODOLA / GENOA

The Italian economic ministry, which owns 32% of the country's aerospace company Finmeccanica, will delay the formation of the Eurosystems network warfare joint venture with BAE Systems unless worries over control are resolved.

The two partners signed letters of intent on the venture last month, and the memorandum of understanding was due to be completed on 20 December, but will probably now be postponed. The Italian government is worried that BAE Systems will end up dominating the partnership.

Under current agreements, BAE will own 60-65% of Eurosystems. The agreements also state that BAE would appoint the chief executive, with full management powers, while Finmeccanica would appoint only a figurehead president.

Source: Flight International