Tuesday, October 21, 2008

Romania Restarts Sale of Avioane Craiova After Talks Failed

By Adam Brown

Oct. 20 (Bloomberg) -- Romania's government put Avioane Craiova, its military-jet producer, on sale again today after talks with Czech aircraft maker Aero Vodochody AS broke down.

The government is asking for indications of interest from new potential bidders for an 81 percent stake in the company, the authority responsible for sales of state assets, known as AVAS, said today in e-mailed statement.

AVAS said the talks with Aero Vodochody failed last month after the Czech company asked for guarantees against Avioane's filing for bankruptcy and job cuts.

Avioane, set up in 1972, produces the IAR-99 advanced jet trainer. Earlier, it made the twin-engine ground attack aircraft IAR-99/J-22 Orao, still used in Serbia.

To contact the reporter on this story: Adam Brown in Bucharest at abrown23@bloomberg.net

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