European insurance and financial services giant Allianz has emerged as a potential buyer of regional jet manufacturer Fairchild Aerospace, which has headquarters in the USA.
Allianz will not comment on any possible bid for the 56% share of Fairchild held by chairman Carl Albert, but industry sources say the two have had talks on a possible deal. Industry speculation has linked Allianz to an approach from US investment house Clayton, Dubilier & Rice, although the suggested link has not been confirmed (Flight International, 6-12 October). Fairchild will say only that negotiations continue with potential investors, and it believes "they will be concluded soon".
The European Commission (EC) is investigating the provision of loan guarantees to Fairchild by Germany's federal and Bavarian governments. It expects to decide on whether to approve them during the next few weeks. It has asked for more information on the guarantees, which cover loans worth DM640 million ($350 million).
"It is state aid, but state aid as such is not illegal," says the EC. "The Commission will decide soon." The guarantees are likely to be approved if the EC is satisfied that the money will be used for research and development purposes, according to EC sources.
Source: Flight International
