* Another hit for AgustaWestland after India bribe scandal
* Companies give no reason for ending JV negotiations
SAO PAULO, April 19 Brazilian planemaker Embraer
SA and a unit of Italy's Finmeccanica SpA
said on Friday they had ended talks to make helicopters in
Brazil without reaching a deal.
The failed talks represent another setback for
Finmeccanica's AgustaWestland in a major emerging market as it
awaits a possible blacklisting in India due to corruption
AgustaWestland faces allegations in Italy and India that it
paid bribes to win a $750 million deal to supply a dozen
helicopters to transport Indian political leaders.
Spokesmen for the companies declined to give reasons for
calling off the negotiations to start a potential joint venture,
first announced in January.
For Embraer, the possibility of producing helicopters in
Brazil for military and commercial uses offered another
potential revenue stream as demand in its traditional business
of regional and executive jets has stagnated in recent years.
Preliminary studies by AgustaWestland and Embraer had shown
a promising market for midsize twin engine helicopters to
service a growing number of remote oil rigs off the Brazilian
coast. Brazil's growing defense budget and private demand in
congested cities also presented opportunities.