Talks between buyout shop Cinven and suitors for Italian aerospace company Avio have stalled over price and political concerns about selling to an international buyer, Reuters reported. Avio provides engine parts for the Eurofighter Typhoon and supplies parts to General Electric and Rolls Royce, Reuters wrote. Avio could reportedly fetch more than 3 billion euro ($4.1 billion). Cinven has held discussions with several potential buyers, including Bain Capital, CVC and Clayton Dubilier & Rice.
(Reuters) – Talks between private equity firm Cinven and potential buyers for Italian aerospace firm Avio are at a standstill over price and rising political concerns about an international buyer, people familiar with the situation said.
Cinven hired banks earlier this year to investigate a listing of a business that provides engine parts for the Eurofighter Typhoon and supplies the likes of General Electric and Rolls Royce.
More recently, the firm has been talking to other buyout houses and rival aerospace companies about a sale, the people said, as it looked to seal a deal in excess of 3 billion euros ($4.1 billion) without resorting to turbulent IPO markets.
Cinven held dicussions with numerous interested parties including French peer Safran , General Electric , German group MTU (MTXGn.DE) and private quity firms including Bain, CVC and Clayton Dubilier & Rice.
Those talks have now stalled, but are not definitely dead, the people said. (Reporting by Sophie Sassard)