A deal by a consortium of Middle Eastern companies to buy Textron has been suspended, according to Kuwaiti newspaper Al-Watan, said an April 26 Wichita Eagle report. The Kuwaiti newspaper, citing unnamed sources, said the action was taken because of Textron losses and possible political reservations that a non-U.S. company would own the company, the report said. In addition, it cited a “non-professional capacity” to dismantle Textron’s units and separate them by civil and military activities, which the company would have to interpret, it said.
On April 10, the newspaper reported that the consortium was close to a deal to buy the parent company of Cessna Aircraft for $21 a share. Textron shares jumped 49% that day, closing at $13.56. Cessna shares closed April 24 at $12.35, up 91 cents.
The Kuwaiti paper had said earlier that the prospective buyers were interested only in Textron’s civil operations and would sell its defense operations to an American company also involved in the deal. It did not disclose the consortium’s members.
Textron CEO Lewis Campbell declined to comment about the Kuwaiti newspaper report other than to say it’s unlikely Textron will sell any more of its businesses to generate cash. Textron sold its Fluid & Power business in November and the HR Textron unit in March.
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