The group, whose projects include stadium work for the soccer World Cup in Qatar, said it had hired Lazard "to examine the entire portfolio of financial instruments and possibly renegotiate or challenge such contracts."

Cimolai, which specialises in steel structures, added that it was not yet possible to assess the effects on its balance sheet. The size of any fund raising would be determined only once Lazard had finished its work, it added.

Bloomberg last week reported that the group had become exposed to derivatives tied to the euro-dollar rate called "targeted accrual redemption forwards" (TARF) as it tried to insulate its currency risk on overseas projects.

Cimolai, a family-founded company based in northern Italy, said that its ordinary business was satisfactory and trading in line with expectations.

"The only problem is represented by some derivative contracts, issued without the knowledge of the president and the corporate bodies, which, due to the sudden fall of the euro against the dollar, present critical issues", the group said in a statement.

The company employs 2,700 people and had turnover of 421 million euros last year, according to its website.

(Reporting by Elisa Anzolin; Editing by Keith Weir)