Iveco Is Said to Seek Up to €1.5 Billion for Defense Unit (1)

Iveco Group NV is seeking as much as €1.5 billion ($1.6 billion) for its defense unit as demand for military assets surges, according to people familiar with the matter.

The Italian manufacturer is speaking to potential buyers including Leonardo SpA, which could make a bid with its joint venture partner Rheinmetall AG, the people said. Iveco is also gauging possible interest from other defense companies and private equity firms, the people said, asking not to be identified because talks are private.

Iveco announced in February that it was considering separating its defense unit through a spinoff. While Iveco ...