Shearman & Sterling represented Finmeccanica S.p.A., Italy's largest engineering and aerospace/defense group, as guarantor in the issue of more than €500 million in 0.375% notes by its subsidiary, Finmeccanica Finance S.A.  The notes are exchangeable into shares of STMicroelectronics.  Proceeds from the issuance were on-lent by Finmeccanica Finance S.A. to companies in the Finmeccanica group for the financing of future acquisitions and joint ventures, as well as for general corporate purposes.

The notes were issued concurrently with the $1.4 billion offering by STMicroelectronics of its ten-year zero coupon senior convertible bonds.  Shearman & Sterling also advised Finmeccanica S.p.A. on regulatory and compliance issues in relation to its subsequent sale of four million shares of STMicroelectronics, sold in an on-market transaction.