M&M in talks to acquire stake in Beechcraft: reports
05 Jul 2012
India's biggest utility vehicles maker Mahindra & Mahindra Ltd is considering placing a bid for bankrupt aircraft maker Hawker Beechcraft Corporation, in an attempt to further strengthen its aerospace business.
M&M, which had been looking to expand its aerospace business, could explore the possibilities of acquiring the American company, according to various media reports.
Beechcraft, which makes both civilian and military aircraft, and was acquired by investment firms Goldman Sachs and Onex Corp in a leveraged buyout in 2007 for $3.3 billion, had filed for bankruptcy under Chapter 11 on 3 May.
Mahindra Group, which formed its aerospace division in 2007, makes light aircraft, as well as parts for Boeing 737s, Gulfstream Aerospace Corp business jets and Lockheed Martin Corp's F-35 fighters.
The reports quoted an M&M spokesperson as saying the company doesn't comment on speculation.
Earlier, Beechcraft made a disclosure stating it has received offers from more than 35 possible buyers and investors. The firm had also contacted 15 suitors based on strategic fit, financial capability and other considerations, according to an official filing in the US.
Beechcraft intends reduce the company's total funded debt of more than $2.5 billion. The company had also resorted to job cuts under an attempt to stay afloat.