Textron ‘probably’ won’t sell Cessna or Bell
Textron CEO Lewis Campbell told an investor group that his company “probably” will not have to sell one of its prime assets, either Cessna Aircraft Company or Bell Helicopter, to meet a cash shortfall through 2010. However, he asked listeners to note that he used the word “probably.”
The most likely to go on the chopping block might be Bell, since Cessna has suffered a decline in orders and is less attractive to buyers, observers suggest. After the speech, a Textron spokesperson called the sale of Bell “improbable,” using a much stronger word than Campbell.
Textron has reached the end of its $3 billion in bank credit and has a plan in place to raise an additional $1 billion, but another $1 billion to $2 billion is needed. The banks need to know there is cash available to pay back the $3 billion in loans, and that is why Campbell entertained the possibility of a sale.
February 11, 2009