AFP, MILAN: Italian military aeronautics company Finmeccanica said Wednesday it would fully take over helicopter makers AgustaWestland by buying the half share held by GKN of Britain for just over one billion pounds (1.506 billion euros, 1.818 billion dollars).
In a statement, Finmeccanica said it had signed a letter of intent in which it also agreed to buy GKN real estate holdings used by AgustaWestland for an extra 62 million pounds.
The cost of acquiring AgustaWestland would be discounted by 35 million pounds, however, if the firm failed to win a contract to supply the British army and navy with Lynx helicopters, it said.
AgustaWestland is the world's second-biggest helicopter manufacturer, supplying the British, Canadian, Danish and Italian armed forces.
Finmeccanica said it would raise the cash by selling part of its 17.25 percent stake in semi-conductor makers STMicroelectronics and by raising a long-term loan.
