KAL formally ends KAI buy-in talks
Negotiations Korean Air (KAL) has formally withdrawn from talks to buy a stake in Korea Aerospace Industries (KAI). KAL says there has been “no further progress between KAI and Korean Air, so we have decided to end the talks”. KAL, whose aerospace division focuses on manufacturing civil aircraft parts, had been seeking a stake since 2003, when it began talks with 28.1%-shareholder Daewoo Heavy Industries & Machinery. The airline said at the time that it later hoped to become majority shareholder of military-focused KAI, through the purchase of new shares that the other main owners of KAI had tentatively agreed to issue.
Elisra streamlines divisions to boost profits
Restructuring Israel’s Elisra is embarking on a reorganisation plan that will boost the range of capabilities of Elisra Electronic Systems, Tadiran Electronic Systems and Tadiran Spectralink, and make the most of the overlap between the three members of the Elisra group. Elisra will establish a new central operations division, which will include its microwave division and be led by Ami Dagan, formerly general manager of Elbit Systems’ Silver Arrow subsidiary. The operations division will provide services to all of Elisra’s business units, increasing efficiency and giving procurement and logistics advantages, as well as allowing for more marketing and research and development (R&D) collaboration. Itzhak Beni is retiring as president and chief executive of Tadiran Spectralink and Tadiran Electronic Systems to join parent company Elbit Systems.
Zodiac sees aerospace growth slowing
Sales Zodiac is expecting organic growth to slow in its aerospace business. Strong aerospace performance for the full-year 2005/2006 was offset by weaker performance in its technology division (see graph). Zodiac has made changes to its senior management team, including the creation of the new position of chief executive, aeronautical businesses.
UK’s Senior to boost Boeing exposure
Acquisition UK-based aerospace engineering company Senior is to acquire the US firm Aerospace Manufacturing Technologies (AMT), a supplier of aluminium parts for commercial aircraft, in a $110 million deal. Senior says the acquisition will provide “increased exposure” to Boeing 737, 777 and 787 aircraft. AMT, which posted revenues of $33.6 million last year, works on aircraft structures including pylons, struts, wing boxes, wings and undercarriage wells.
Stork defends strategy to shareholders
Strategy Dutch industrial group Stork is to hold a further extraordinary general meeting (EGM) next month following calls from investment funds Centaurus and Paulson to allow shareholders to vote on a proposal for the company to concentrate on its aerospace business, and divest non-core assets. Stork defends its strategy, arguing that the Stork umbrella “adds clear benefits. Stork is of the opinion that the present unrest and the request for yet another EGM is not in the interest of the company, customers and other stakeholders,” it says. “Nevertheless, Stork is prepared to meet the request to hold an EGM of shareholders.”
Source: Flight International
