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DASA in talks with Alenia
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August 2, 1999: 7:41 a.m. ET
German aerospace company confirms talks with Italian firm, government
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LONDON (CNNfn) - Germany's DASA confirmed Monday that it is talking to Italy's Alenia about closer cooperation in the European aerospace industry.
DASA, the aerospace wing of DaimlerChrysler, confirmed to CNNfn that talks have been going on with Alenia's management and the Italian government for some time. However, DASA refused to comment on the substance of the negotiations.
Alenia is part of Finmeccanica, Italy's state-owned industrial and engineering holding company. A privatization of the aerospace company is planned for next year, and DASA conceded it was not the only company looking for a piece of the action.
A DASA spokesman told CNNfn that "all the major European aerospace companies are talking with Alenia."
Speculation in recent weeks has tied Alenia with the French defense electronics company Thomson-CSF (PHO), as French politicians favor a European tie for Thomson rather than a deal with a U.S. concern.
A tie-up would be just the latest in a series that has seen the European defense and aerospace industry whittled down to just a few serious participants.
Britain's General Electric Company has effectively announced it will leave the sector late this year by selling its Marconi unit to British Aerospace. GEC plans to concentrate on telecom technology.
The GEC/BAe deal scuttled a potential alliance between BAe and DASA. France's state aerospace champion Aèrospatiale was partly privatized last year and merged with Matra, the defense arm of the Lagardère conglomerate (PMMB).
In July British Prime Minister Tony Blair signed an accord with his Italian counterpart Massimo D'Alema to provide for closer integration between the two countries on aerospace matters.
DASA has already acquired a 30 percent stake in Spain's state-owned aerospace manufacturer Casa.
Despite the deals done so far, more are expected, as Europe seeks to create a giant in the defense and aerospace field to compete with U.S. behemoths Boeing (BA) and Lockheed Martin (LMT).
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