2219 GMT - Citi is somewhat surprised by Wildcat Infrastructure's engagement with military shipbuilder Austal, which has been weighing a bid by South Korea's Hanwha for its U.S. operations. "From a transaction perspective, Hanwha's effective 19.9% stake (including swap) may represent a significant hurdle to any competing proposal," says analyst Sam Teeger. Still, it's unclear whether Hanwha can vote on a possible Wildcat-led transaction, he adds. Austal yesterday said it held a preliminary discussion with Wildcat, but hasn't received a proposal. Citi expects Hanwha to be the more logical buyer. "If the U.S. administration's objective is to accelerate naval shipbuilding capacity, Hanwha's extensive shipbuilding expertise appears an advantage, albeit with the caveat that its defense experience has largely been in Korea rather than U.S.," Citi says. It has a buy call on Austal.