Mubadala Aerospace Not Interested In Latecoere

September 28, 2010

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Debt-laden French fuselage maker Latecoere, which is seeking a new industrial partner, is not on Mubadala Aerospace's radar, an executive at the Abu Dhabi company said on Tuesday.

When asked whether Mubadala Aerospace was interested in buying a stake in Latecoere, Homaid al-Shemmari said: "No, we are not interested at all".

Latecoere said it was not ruling out any option to help shore up its position in Europe's fragmented aerospace sector, when naming a new chairman on September 1.

Latecoere shares rose 21 percent on Monday after US rival Spirit AeroSystems was reported to be lining up a bid for the ailing supplier.

The potential move would mark a second attempt by the world's largest aircraft structures supplier to install itself in France after Spirit, formed from a spin-off of Boeing activities, was discouraged from bidding for two Airbus factories in 2008.

Mubadala Aerospace, part of government-owned investment company Mubadala, is on the lookout for acquisitions.

Abu Dhabi aspires to build itself into a regional aerospace hub, while neighbouring Dubai, the Middle East trade and tourism capital, aims to become an aviation and logistics centre, building what is planned to be the world's largest airport.

(Reuters)