Daily Archives: April 24, 2009

Deal by Arabic companies to buy Textron is off, a Kuwaiti report says

April 24, 200911:55 a.m.

A report by Kuwaiti newspaper Al-Watan said last week that a consortium of Arabic companies was close to a deal to buy Textron, parent to Cessna Aircraft.

Today, the newspaper is reporting that the deal has been suspended, citing unnamed sources.

The action was taken because of the emergence of further losses suffered by Textron and possible political reservations that a non-U.S. company would own Textron, the report said.

In addition, it cited a “non-professional capacity” to dismantle Textron’s units and separate them by civil activity and military activity. The company would have to interpret that activity, it said.

Last week’s news that a deal was imminent sent Textron stock soaring. Shares jumped 49 percent that day.

By Molly McMillin | Filed under Uncategorized | Comments Off

Spirit AeroSystems freezes nonunion salaries

April 24, 200911:13 a.m.

turnerSpirit AeroSystems‘ board of directors will freeze their own salaries and those of Spirit’s executives, managers and salaried employees — a total of 1,800 people — the company said today.

The action comes in an effort to contain costs in light of the current global economic uncertainties, Spirit CEO Jeff Turner said in a memo.

The economic downturn has not affected Spirit’s business as deeply as others in the industry, Turner said. But it’s important to be cautious and prepared, he said.

“Our board understands that it is vital to manage costs and ensure the company remains viable, but to do so in as many innovative ways as we can, rather than resorting immediately to layoffs,” Turner said.

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By Molly McMillin | Filed under Spirit AeroSystems | Comments (11)