LYON, France (Reuters) - France and Italy agreed on Wednesday to end their row over an Italian bid for shipbuilding firm STX France, with a deal that gives the buyer, Fincantieri (FCT.MI), effective control without it legally owning a majority, an Italian government source said.
The deal, struck in talks between French President Emmanuel Macron and Italian Prime Minister Paolo Gentiloni, gives Fincantieri 51 percent of STX, though 1 percent of this holding would be in the form of shares lent by Paris, the source said.
Paris has a right under the deal to demand back the 1 percent equity stake under certain circumstances, the source said. But it was unclear what would happen with the ownership of STX if it chose to do so.
Reporting Giselda Vagnoni; Writing by Mark Bendeich; Editing by Valentina Za