Defense firm Finmeccanica plans capital increase

The 1.4 billion euro increase may take place through the issue of ordinary shares. The plan will be submitted to an extraordinary shareholders' meeting later this summer, Finmeccanica said.

The share issue could be launched by the end of the current financial year, the statement said.

The capital increase is part of the company's financing moves under its $4 billion acquisition of DRS Technologies announced last month.

With the deal, the Rome-based Finmeccanica seeks to boost its international role as a supplier of defense and security systems, while DRS hopes the enlarged company will enable it to bid for large-scale projects in the United States and abroad.

DRS, based in Parsippany, New Jersey, makes a wide range of electronic gear for the U.S. military and intelligence agencies, including thermal imaging devices, combat display workstations, power systems, and air combat training systems.