May 8 (Bloomberg) -- Finmeccanica SpA, Italy's biggest defense company, had its biggest fall in two weeks in Milan trading after the Wall Street Journal reported that it may buy DRS Technologies Inc., a New Jersey-based maker of military electronics systems.

Finmeccanica, based in Rome, fell as much as 28 cents, or 1.3 percent, to 21.74 euros, and traded at 21.88 euros at 10:30 a.m. in Milan, giving the company a market value of 9.3 billion euros ($14.3 billion). The stock has closed lower the last four trading days.

The Wall Street Journal reported today that Finmeccanica would likely pay a premium of 25 percent or more for DRS, which closed at $63.74 yesterday in New York, up 1 percent, and has a market value of $2.6 billion. The newspaper said it wasn't able to ascertain the exact terms of the transaction.

The Italian defense company is aiming to expand in the U.S. to help reduce reliance on its slower-growing home market. Finmeccanica makes carbon-fiber frames for Boeing Co.'s 300-seat 787 Dreamliner and its AgustaWestland helicopter division has a supply contract with Lockheed Martin Corp. for the U.S. presidential fleet.

Finmeccanica doesn't comment on rumors or speculation, said an official who asked not to be named, citing company policy.

To contact the reporter on this story: Armorel Kenna in Milan at akenna@bloomberg.net

Last Updated: May 8, 2008 04:37 EDT