STS, analysts puzzled over business plan

Genoa - The strategy of Ansaldo STS and Hitachi Rail Italy, its majority shareholder, is not convincing analysts. According to investment consultancy firm Equita, following results for the first nine months of the year, no indication on finding potential synergies with Hitachi have emerged, as they’re “probably yet to be assessed, pending further clarification of the firm’s shareholding structure.”

A business plan for Ansaldo STS should be released in the first half of 2017, “but its presentation remains doubtful,” added the analysis by Equita, which went on to stress the importance of the company also clarifying details around the creation of the new bid committee, that should serve to give it flexibility in decision-making on bids of between 150 and 350 million. “This committee has not been approved unanimously by the board, as its intent appears to be to exclude representatives from minority shareholders from tender selection processes, and risks becoming a further point of friction between Ansaldo STS and the funds,” said Equita.