Deals

Saipem Is Said to Explore $4.5 Billion Survival Package

  • Italian company is weighing capital hike, asset sale
  • Saipem also in talks with banks over extending credit faciliy
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Saipem SpA is considering a roughly 4 billion-euro ($4.5 billion) restructuring package that could include a cash injection and asset sales, according to people familiar with the matter, in the wake of a shock profit warning.

The Italian engineering firm is exploring plans for a capital increase of about 2 billion euros and also negotiating with banks to extend a 1 billion-euro credit facility, the people said. It’s also working with advisers on the potential sale of one of its drilling divisions, they said. A drilling sale could raise 1 billion euros, one of the people said.