Cirrus Dismisses 'Counter Offer' Speculation

Cirrus Dismisses ‘Counter Offer’ Speculation

Stephen Pope

Thursday, March 31, 2011 at 01:01 AM ET

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Cirrus chairman Dale Klapmeier Pia Bergqvist

Key Takeaways:

Cirrus chairman Dale Klapmeier unequivocally denied the existence of any counter-offer from U.S. investors, stating the proposed buyout by China's CAIGA Co. is proceeding unopposed.
The primary remaining hurdle for the CAIGA acquisition is U.S. government approval, which Klapmeier anticipates will be secured for a deal closing this summer.
Klapmeier assured that Cirrus aircraft production will remain in Duluth, Minnesota, with Chinese production only commencing to serve an indigenous Chinese market, not for re-export to the U.S.
CAIGA's plans for Cirrus include bringing the Vision jet to market and developing a full family of aircraft to ensure the company's profitability.

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Cirrus chairman and co-founder Dale Klapmeier this week sought to put an end to talk of a possible counter bid to a buyout deal from a Chinese aviation company. “There is no counter offer,” Klapmeier said at Sun ‘n Fun on Wednesday when asked about the news that a group of private U.S. investors led by market analyst Brian Foley was banding together to outbid China Aviation Industry General Aircraft (CAIGA) Co. for the assets of Cirrus.

Foley told Flying he has received commitments from investors for about half the money he needs to bid on Cirrus, which has a rumored selling price north of $200 million. Klapmeier’s response was incredulous. “We’ve talked with everyone in this industry who might be interested in buying Cirrus,” he said. “The chance that somebody who has never talked with the company could come in and bid for Cirrus at this stage is beyond remote.”