The future of FLS Aerospace, which employs 1,500 at Dublin Airport, is in doubt again after its Danish parent company said today it may be the subject of a takeover bid.
Shares in Danish construction group FLS Industries and its holding company Potagua shot higher today after the companies said it has received an approach from an as yet unnamed consortium.
An unnamed consortium is contemplating a public offer for Potagua and FLS, one of Denmark's oldest companies in which Potagua holds almost two-third of the votes. The consortium has indicated it could pay around €900 million for the two companies.
In its interim results in August, FLS added to speculation that it is poised to sell the aerospace wing to Swiss-based SR Technics by saying aerospace maintenance was no longer a core business of the group.
FLS Aerospace is based in Dublin, Manchester and Stansted. Due to the slump in the airline business, its profits have been eroded recently, with the Irish section producing a pre-tax loss of €1.3 million in 2002.
FLS entered the Republic in December 1998 following its takeover of Team Aer Lingus. Clients include Aer Lingus, Ryanair, Virgin Atlantic and Easyjet.