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Cirrus Counterbid Appears Less Likely

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Key Takeaways:

  • A U.S. investor group led by Brian Foley is now unlikely to submit a formal counter bid for Cirrus Design, preferring to wait and see if the expected sale to Chinese interests (CAIGA) closes.
  • Foley's investors have indicated they would re-evaluate a bid if the Chinese deal, anticipated to close next month, does not proceed.
  • Despite his group's current stance, Foley believes other American investor groups may still be working on plans to acquire Cirrus and restore it as a U.S.-owned company.
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A group of private U.S. investors led by aviation market analyst Brian Foley now appears unlikely to submit a formal counter bid for the assets of Cirrus Design prior to its sale to Chinese interests.

“The initial investor response was swift and encouraging,” Foley said in a statement to the press. “We’ve since had time to follow up, and even contact those on our own aerospace investor list. While we continue to identify and vet more prospective investors, the general consensus thus far is to see first whether the Chinese offer currently on the table proceeds to fruition. There is some element of doubt on this, but many believe it probably will. If it doesn’t, however, we have investors waiting to re-evaluate the situation. We acknowledge our investors’ viewpoint in following this approach.”

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