Lockheed, Textron Final Suitors For Sikorsky Aircraft

Reports from financial media, including Reuters, indicated earlier this week that only two suitors-Lockheed Martin and Textron-remain in the bidding for Sikorsky and that UTC’s preference is for an all-cash deal.

(UTX) unit Sikorsky Aircraft, Reuters reported Wednesday, citing people familiar with the matter.

One of the sources said that Boeing and Airbus, who have previously expressed interest to acquire the helicopter business, are now out of the race.

Sources also added the company may spin off Sikorsky to shareholders in a tax-free deal. ( TXT ) are the final contenders to buy United Technologies Corp.

UTC would either sell or spin off Sikorsky, despite company winning two design competitions previous year to produce helicopters for the White House and the US Air Force, Reuters quoted UTC as saying last month.

Textron, which a market value of United States dollars 12 billion, is the maker of Bell helicopters and Cessna planes, initially proposed a merger on the basis of the U.S. regulatory procedure Reverse Morris Trust, which allows mother companies to sell subsidies without incurring large tax costs.

Spokesmen for Textron and Bethesda, Maryland-based Lockheed declined to comment to Bloomberg News on the prospect of a Sikorsky acquisition, while a message left with United Technologies wasn’t returned.

Analysts reportedly believe Textron is the most likely victor of the tender as it seeks to strengthen its Bell Helicopters wing.

Lockheed and Sikorsky already work together on several major helicopter programs, including the presidential helicopter, a combat rescue helicopter and the MH-60R- and S-model helicopters built for the Navy and Marine Corps.