Stands By Legality Of Confidentiality Clause
ANN REALTIME UPDATE 07.11.08 1900
EDT: Below is the official statement from Dr. Bruno M.
Kuebler, insolvency administrator for Thielert Aircraft Engines, in
response to Diamond Aircraft's announcement Friday it will not
pursue bidding for the assets of TAE:
"We have learned of Diamond Aircraft's decision, not to
participate in the bidding process via the press and have taken
notice of it. However, the procedure of the bidding process
including the confidentiality agreement comply with international
standards. Like all other potential investors, Diamond would have
received comprehensive Information regarding the situation of
Thielert after signing the confidentiality agreement.
"Hence, the reasons Diamond is presenting for its
non-participation are clearly pretext. Possibly Diamond have had to
recognize that the bidding process is only meant for prospective
buyers that are seriously interested. Diamond's actions clearly
serve the purpose of derogating Thielert's reputation in the naive
assumption to be able to subsequently purchase Thielert far under
value."
And the sniping continues...
Original Report
1200 EDT: They're out.
Diamond Aircraft announced Friday the company, and we quote, "will
not participate in the TAE Bidding Process!"
Diamond tells ANN it wont submit a bid for the insolvent German
enginemaker "upon review of the Confidentiality Agreement and
Summary Description of TAE, as provided by Insolvency Administrator
[Bruno] Kuebler," the company writes. "The Summary Description, in
Diamond’s opinion, withholds relevant facts regarding the TAE
engines, the TAE customers and the competitive market forces."
The planemaker adds restrictions of the Confidentiality
Agreement -- a required stipulation for any interested bidders for
Thielert,
as ANN reported earlier this week --
"effectively preclude the obtaining of factual and objective
information about TAE and its engine development and production,
that is vital to the due diligence process regarding the valuation
of TAE and the evaluation of the business risks."
Diamond and Kuebler have traded very public PR blows since May,
when the planemaker accused the insolvency administrator of acting
not in the best interests of Thielert, or its customers... but was
only looking to sell off the company as expeditiously as
possible.
Last month, Diamond proposed a consortium of
companies, including Piper and Cessna, to join together to purchase
the assets of Thielert. That suggestion -- and the targeted $79
million purchase price -- was soundly denounced as "noise" by
Kuebler, who claims "over 50" prospective buyers for Thielert's
assets.
Diamond's announcement Friday may mark the end of harsh rhetoric
flying between Kuebler and Diamond... but the planemaker got its
last licks in. "The insolvency administrator is continuing his
pattern of release of only partial information," the company said
of Kuebler. "Diamond will not participate in such a process."
The Austrian-Canadian manufacturer has been Thielert's largest
customer for its Jet-A fueled, aviation diesel engines for years...
but may not be for much longer, as Austro Engines -- a stand-alone
company with close ties to the planemaker -- is hard at work to
develop its own diesel powerplant.
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