MILAN, June 19 Italian airplane engine parts
maker Avio is set to postpone its listing on the Milan stock
exchange again because of market conditions, and a final
decision is expected next week, sources close to the situation
said on Tuesday.
Last month, Avio - controlled by private equity fund Cinven
- filed to list its ordinary shares, aiming for an
initial public offering in July.
"The banks and the company will decide by the end of next
week to postpone the IPO to after the summer," one of the
sources said, speaking on condition of anonymity
Market conditions now would force the company to price an
offer at a very steep discount, the source said. Avio had
already halted filing procedures for an IPO in October, citing
Avio has also been in talks with potential bidders including
France's Safran and private equity funds CVC Capital
Partners and Clessidra, although its CEO said in a newspaper
interview on Monday that the company was still working on the
Italy's state-backed Strategic Fund has also said it was
interested in investing in the group.
Italian defence group Finmeccanica has a 14
percent stake in Avio.
(Reporting by Elisa Anzolin Writing by Silvia Aloisi; Editing
by Gary Hill)