Fokker may be divided up as Samsung cancels takeover plans

SAMSUNG Aerospace of South Korea has abandoned its attempt to take over Fokker, a move which increases the possibility that the…

SAMSUNG Aerospace of South Korea has abandoned its attempt to take over Fokker, a move which increases the possibility that the bankrupt Dutch aircraft maker will be broken up and sold instead of being preserved under a new owner.

The decision by Samsung, which was one of the last potential suitors for Fokker, had been expected ever since its negotiations with Fokker's receivers were suspended in November.

The Samsung deal collapsed after it failed to secure financial support for the Fokker acquisition from other Korean aerospace companies under a government sponsored plan.

Worried about bearing the entire estimated £503 million investment to revive Fokker, Samsung had been encouraged by the Seoul government to form a consortium with Hyundai, Daewoo and Korean Air.

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The Korean government viewed the Fokker takeover as a short cut to the creation of a civilian aircraft industry, which has been a long term national goal.

But the proposed Korean partners in the Samsung led consortium expressed scepticism about the future of Fokker in the crowded global market for medium sized regional aircraft.

The decision by Short Brothers of Northern Ireland to cease production of wings for Fokker F-70 and F-100 regional jets added to a belief that restoring Fokker would be difficult.

Shorts said it could now wait for Fokker to find a suitable partner.

The only company still thought to be interested in Fokker is the Russian aircraft maker Yakovlev, which believes a Fokker purchase could help it secure a quarter of the Russian aircraft market by 2000.

But there are doubts about Yakovlev's ability to finance the deal.