Fincantieri, the Italian ship-builder is considering buying the civil engineering activities of Finmeccanica, the Italian engineering conglomerate, in a deal which could be worth up to €1.7bn ($1.94bn). Fincantieri has hired Merrill Lynch to examine its options.

The Italian Ministry of the Economy last month appointed Mediobanca, the Italian investment bank, to advise on how best Finmeccanica may retain its core aerospace and defence business, while either spinning or selling its civil engineering business.