Carlyle bets on strategic bidders in Arinc sale -sources

Thu Jul 11, 2013 9:15am EDT
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* Honeywell, Lockheed, Rockwell Collins among bidders -sources

* Amadeus, Thales also involved in second-round bidding -sources

* Carlyle hopes to fetch as much as $1.5 bln from Arinc sale

* Private equity seen less likely to meet price expectations

By Soyoung Kim and Greg Roumeliotis

NEW YORK, July 11 (Reuters) - Carlyle Group LP is betting that industrial companies rather than buyout firms are more likely to meet its target price of up to $1.5 billion for the aerospace communications firm Arinc Inc, according to four people familiar with the matter.

Industrial conglomerate Honeywell International Inc and travel technology company Amadeus IT Holding SA are weighing offers in the second round of bidding for Arinc, the sources said, adding to the roster of companies participating in the auction previously reported by Reuters.

Lockheed Martin Corp, Rockwell Collins Inc and Thales SA, as well as a handful of private equity firms, also made it through to the second round, sources familiar with the matter told Reuters last month.

With fully-financed bids expected at the end of July, Arinc management is spending more time speaking with the aerospace and industrial companies and making more information available to them, rather than the private equity bidders, sources told Reuters this week.   Continued...