Air Transport World

Investment Canada grounds buy offer for De Havilland.

INVESTMENT CANADA GROUNDS BUY OFFER FOR DE HAVILLAND

Investment Canada has rejected Aerospatiale/Alenia's offer to buy Boeing/de Havilland because the deal wouldn't benefit Canada, Industry Minister Michael Wilson said in a written statement. The European consortium has 30 days to sweeten its offer but whether it will do so is unlikely, because the government won't go along with demands for millions of dollars in federal support, an inside source revealed.

Officially, Investment Canada wants to ensure that the Dash 8 product line continues following the takeover and that jobs will be preserved. The consortium said that it would lay off hundreds of production workers permanently and contract out subassembly work as part of its long-term business plan. …

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