Avio drops on report of capital raise, waning M&A appeal

Avio SpA

11/09/2025 09:40

** Shares in Italy's Avio AVI.MI extend Wednesday's losses and fall as much as 10.4% after Bloomberg News reported the rocket maker may consider a capital hike for up to 300 million euros ($350.67 million)

** Its main shareholder Leonardo LDOF.MI no longer considers Avio strategic and was not expected to take part in the increase, Bloomberg reported citing people familiar with the matter

** An Avio spokesperson declined to comment

** "We are surprised by the magnitude (of the capital increase), while we would have assumed a figure of around half," says Equita in a note

** The broker estimates Leonardo's stake to dilute to below 25% from the current 28.75%

** It adds that this would be further confirmation that Avio is not part of planned space alliance enlargement project between Leonardo and Thales TCFP.PA with Airbus AIR.PA

** "It would therefore put an end to speculative appeal linked to a possible takeover of Avio," broker Intermonte adds in a note

** At 0804 GMT shares in Avio trim their losses to 2.4%, underperforming Italy's all-share index .FTITLMS, which rises 0.5%

($1 = 0.8555 euros)

 (Reporting by Enrico Sciacovelli)

 ((enrico.sciacovelli@thomsonreuters.com))