Fincantieri no longer set to acquire Davie, but alternate buyer is hovering

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davieLévis, Québec, shipbuilder Davie Yards said yesterday that discussions that would have seen it acquired by Fincantieri are over.

“The interested parties have concluded that it is not possible to reach an agreement within the time allowed to submit a bid on July 21 for the National Shipbuilding Procurement Strategy said the President and CEO of Davie, Mr. Gustav Johan Nydal. He continued, “Unfortunately, the two-week extension granted by the federal government to submit a valid bid was not sufficient to conclude a deal with Fincantieri. We have tried but the delay is too short.”

Davie said it had also obtained a court order extending its protection from creditors under Canada’s Companies’ Creditors Arrangement Act to July 22, 2011. It said the extension will allow it “to consider all options for the future of the yard.”

Those options could include acquisition of Davie by a new entity held jointly by Upper Lakes Group and Daewoo of South Korea, according to a Canadian press report that quotes SNC-Lavalin vice-president Leslie Quinton as its source.

Engineering giant SNC Lavalin is apparently in a joint venture with the Upper Lakes/Daewoo entity that would pursue the National Shipbuilding Procurement Strategy business.

July 15, 2011

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