US investor takes the lead alone in taking control of Walter

Published: 11/2/1999

Uncertainty over its final ownership has recently dogged troubled state-owned Czech engine producer, Walter. Rumours of potential buyers have included a number of western names, notably Pratt & Whitney. The condition of the company has continued to decline, with losses totalling 1.6 billion crowns and 200 workers being laid off by the end of this year. Earlier this month, reports emerged that a partnership of US investor, Robert Fessler and Tony Ryan, founder of Irish low cost carrier Ryan Air, was bidding to take control of 94% of Walter's stock. They planned to manage the company in close collaboration with Volvo Aero, which has recently acquired Fessler's stake in US engine parts distributor, AGES. The potential deal also received the support of British Aerospace and Saab who, as part of the bid to sell the Gripen fighter to the Czechs, undertook to direct offset work to Walter. It appears, however, that Ryan may have fallen out of the plan to buy the stake through a 50:50 joint venture with Fessler and the acquiring company will now be completely controlled by Fessler. The decision on the final sale is due to be made by the end of 1999.

Article ID: 1035