Iveco says in advanced talks for deals on defence unit, rest of company

Italian truck maker Iveco IVG said on Tuesday it was in "ongoing, advanced" talks with different parties for two separate deals regarding its defence business and the rest of the company.

"The board of directors of the company is in the process of carefully reviewing and evaluating all aspects of these potential transactions," the company said in a statement, without giving further details.

Iveco added its board would keep the market updated in line with applicable laws. Shares in Iveco rose 6.6% by 1250 GMT.

Two sources close to the matter told Reuters the deals could be announced as early as Wednesday, when Iveco is due to report first half results.

Reuters first reported this month that Exor EXO, the Agnelli investment company which owns a controlling stake in Iveco, was in talks with Tata Motors TATAMOTORS for the sale of the company. Exor declined to comment.

A third source separately said the possible deal with Tata was "complex" and required Iveco disposing of its defence business first because, as a supplier of the Italian army, the division had to remain in domestic hands.

Iveco has been working to spin off its IDV defence business, while also exploring a possible sale given interest from potential suitors.

It has received three offers for IDV: from Italian state-controlled defence group Leonardo LDO, which is partnering with Germany's Rheinmetall RHM. Another two, respectively, from Franco-German tank maker KNDS and Czech arms company Czechoslovak Group.