Identity of acquirer remains unknown (240 words)

Published: 10/24/2000

The Chairman of Nizhni Novgorod landing gear producer OAO Gidromash, Vladimir Lyzyanin, has suggested that the plant may become a victim of a hostile takeover. According to Lyzyanin who was reluctant to reveal the identity of the hostile acquirer, he learned of the possible attack while attending the congress of the Russian Union of Industrialists and Entrepreneurs, in Moscow at the beginning of October. Playing the local card, Luzyanin suggested that the oputcome of this action could potentially be the bankruptcy of the enterprise or a siphoning off of income to Moscow. The reason for the public announcement of the potential interest appears to be the fear on the part of the management that they will have a dirty tricks campaign waged against them prior to the start of a potential bid, aimed at discrediting them and therefore making a takeover easier.The employees and management of the plant currently hold just over 7% of the company. Despite extensive examination it has been difficult to find out who may have interest in this relatively successful aerospace company that currently works as a sub contractor for a number of western producers including Messier Dowty. Given that Gidromash is one of two Russian landing gear producers, the other being Aviaagregat also based in Samara.The suspicion is that Siberian Aluminium the major shareholder in the company may be looking to consolidate the industry. To date however, there has been no confirmation.

Article ID: 2148