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Boeing halts copter sale
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June 9, 1998: 5:57 p.m. ET
Aircraft maker suspends sale of helicopter unit to Bell, seeks new buyer
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NEW YORK (CNNfn) - In efforts to placate federal regulators, aerospace giant Boeing Corp. Tuesday suspended the previously announced sale of its commercial helicopter lines to Bell Helicopter and agreed to begin searching for a new buyer.
Seattle-based Boeing said it will begin marketing the MD 500 and MD 600 helicopters to other potential buyers. If no buyers are found, however, the company said it will return to the Federal Trade Commission to seek approval for the sale to Bell Helicopter.
Bell Helicopter agreed to buy the single engine, turbine-powered light helicopter lines from Boeing in February. But staff reviewing the transaction at the FTC raised questions about the affect of the deal on competition.
Bell Helicopter already has roughly 50 percent of the world's commercial helicopter market.
A company spokesman said the Boeing acquisition would not have added significantly to its market share.
Ken Jensen, a spokesman for Boeing, noted the FTC had not directly denied its approval of the transaction.
In its announcement today, Boeing reaffirmed its commitment to unload its commercial helicopter business - its goal is to be out of the business by the end of the year.
The terms of the proposed sale to Bell Helicopter have never been released, but analysts have estimated it at $100 million or less.
Until a buyer is found, Boeing said it will continue to sell, produce and deliver its entire line of light commercial helicopters. The company also will continue to provide parts and technical service to its customers worldwide.
Boeing acquired the commercial helicopter lines, which generate about $100 million in annual sales, as part of its $16.3 billion acquisition of McDonnell Douglas last year.
Earlier this month, Boeing said it would phase out production of the MD-11 long-range jetliner, a move that all but eliminates the original civil aircraft line acquired in the merger with McDonnell Douglas.
Shares of Boeing (BA) closed Tuesday on the New York Stock Exchange at 46, up ¼.
Shares of Bell Helicopter's parent company, Textron, (TXT) fell 1/16 to 72-5/8 on the Big Board. 
--from staff and wire reports
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