GKN confirms Westland stake sale
Westland makes Apache and Lynx helicopters
Engineering group GKN has confirmed it is ready to sell its 50% stake in helicopter- maker AgustaWestland to its Italian joint-venture partner.
The company said it had agreed in principle to a £1.06bn deal to offload the Yeovil-based aerospace group to engineer Finmeccanica.
GKN said this "transforming move" would allow it to cut debts and focus on strengthening its other businesses.
The move signals the end of British ownership in the helicopter industry.
The company hopes to make new acquisitions to boost its car business and other aerospace ventures, with reports suggesting it is considering making acquisitions in the US.
End of an era
Long before Westland merged with Agusta, the company was at the centre of a political storm.
The so-called Westland affair in the mid-1980s led to the resignation of former Defence Secretary Michael Heseltine.
It is the right price at the right time
Kevin Smith, chief executive
Mr Heseltine quit Margaret Thatcher's government following a row over a rescue package for the company which was suffering from serious financial problems.
But the company survived and eventually Westland and Agusta joined together in 2000, creating a company with an order book totalling £5.33bn.
AgustaWestland currently ranks as the world's second largest helicopter maker.
It is currently bidding to supply the White House with new helicopters, including the aircraft used by the US president.
The sale to Finmeccanica leaves the industry dominated by North American and continental European manufacturers such as Sikorsky, Boeing, Bell and EADS-owned Eurocopter.
Commenting on the sale, GKN chief executive Kevin Smith said: "AgustaWestland has created tremendous value for its shareholders. Today's agreement allows each of us to take advantage of that value.
"It is the right price at the right time."
http://news.bbc.co.uk/2/hi/business/3749321.stm