UTC shortlists US firms to buy Sikorsky

The deal is reportedly valued at USD 8 billion.

UTC will consider both bids and decide by the end of July on the eventual winner, a source told Reuters.

The company said in June it would be exiting the helicopter producer and would either sell or spin off the firm.

PZL Mielec is a Polish aerospace manufacturer was acquired by Sikorsky Aircraft Corporation in 2007.

The company has financial problems on the back of falling oil prices that have reduced demand for helicopters used to transport oil and gas exploration platform equipment.

Textron, which a market value of USD 12 billion, is the maker of Bell helicopters and Cessna planes, initially proposed a merger on the basis of the US regulatory procedure Reverse Morris Trust, which allows mother companies to sell subsidies without incurring large tax costs.

Lockheed Martin, meanwhile, is valued at USD 60 billion.

UTC has reportedly made it clear it is not interested in a share swap that would see it take shares in Textron in return for control of the company.

Textron has said it could look for private equity fund support to make a cash offer.

Boeing had also shown an interest in the Polish company.

Analysts reportedly believe Textron is the most likely winner of the tender as it seeks to strengthen its Bell Helicopters wing.

Sikorsky is seen as a "signature company" that could help Lockheed produce strong revenues in the medium term, when production of the F-35 fighter jet programme begins to taper off, a source told Reuters. (jh)

Source: Reuters