Strategic partner for Czech engine producer to be selected soon

Published: 7/2/1999

According to the Czech government, the search for a strategic partner for aircraft engine and turbine manufacturer, Walter Praha, has been narrowed down from four to two candidates. Ms Dagma Placha, spokewoman for the Trade and Industry Ministry confirmed that: “We will select one of the two by the end of June 1999.” The Ministry is working with Aero Holding and Konsolidacni Banka Praha in order to find Walter's strategic partner. Mr Tomas Krones, spokesman for Konsolidacni added that the names of potential investors would not be released until later in the process, as this may prejudice the negotiations. He further commented that the extent of government support involved in securing the deal would also not be revealed. Not unexpectedly, rumours suggest that Pratt & Whitney is a potential investor together with another, unnamed financial investor not associated with the aircraft industry. Walter urgently requires a strategic partner, according to management, if it is to avoid bankruptcy. The company has accumulated losses of 1.6 billion crowns and, by the end of 1999, will have to lay off around 200 workers. Walter signed contracts for $5m at the recent Paris Air Show according to the company's marketing director.

Article ID: 644