Italian aero-engine parts maker Avio has suspended filing procedures for the initial public offering of its shares, citing market volatility, Avio and its owner BCV Investments said on Friday. Avio and BCV remain committed to listing in Milan as soon as financial markets permit, they said in a statement. BCV comprises the Cinven private equity firm and Italian aerospace and defence group Finmeccanica SpA.
"Given current market volatility, Avio and BCV believe it is unlikely the IPO will take place in 2011. Avio has therefore temporarily suspended the formal filing procedure," they said. Apart from the IPO process, Cinven has had talks with potential buyers of Avio such as other buy-out houses and rival aerospace companies, but these have stalled on price and political concerns, people familiar with the situation said at the end of September.
Italian state holding Cassa Depositi e Prestiti (CDP) is also interested in Avio, CDP's head said in September after reports France's Safran was eyeing the company. Avio, which supplies engine parts for the Eurofighter Typhoon and engine makers General Electric and Rolls Royce, had sales of 1.75 billion euros in 2010.
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