Wed, Apr 27, 2011
Group Still Hopes To Bring Company Back Under U.S. Control
In March, industry consultant and investment banker Brian Foley
published a report exploring the buying up of US general-aviation
companies by foreign entities. In doing so, he unwittingly
discovered a widespread penchant for getting one particular
company, Cirrus Aircraft, back under US control.
Cirrus, based in Duluth, Minnesota, designs and manufactures small,
single-engine aircraft that are highly regarded for their modern
technology and innovative safety features. Cirrus is viewed by many
to be part of America's aviation heritage, but its sale to China is
pending in a deal that might be approved as early as May.
Although formed in 1984, Cirrus has been 58% owned by the
Bahraini concern Arcapita since 2001. The current Chinese deal, for
a reported $210 million, would be for 100% of the company --
leaving no US ownership, which has been a major cause of
consternation. Struck by how passionately the community wanted
Cirrus to be back in American hands, Foley saw a window of
opportunity to at least to try and assemble a group of investors
and organize an eleventh-hour unsolicited bid.
"The initial investor response was swift and encouraging," Foley
said. "We've since had time to follow up, and even contact
those on our own aerospace investor list. While we continue
to identify and vet more prospective investors, the general
consensus thus far is to see first whether the Chinese offer
currently on the table proceeds to fruition. There is some
element of doubt on this, but many believe it probably will.
If it doesn't, however, we have investors waiting to reevaluate the
situation. We acknowledge our investors' viewpoint in following
this approach."
Foley believes that other possible
investor groups are also working on contingency plans for Cirrus.
"Some have been in contact with us, while others are more low-key.
What's important is knowing that the merits of our concept are
shared by others, which hopefully boosts the odds of restoring
Cirrus as an American-owned fixture."
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