Tuesday, September 21, 2010

Clipper in talks with UTC about takeover

The announcement came alongside Clipper’s interim financial statement for the six months preceding 30 June where the company reported a 65% fall in turbine sales compared to the previous period in 2009.

Clipper also said it consolidated cash had fallen from $140million at the end of June to $86million at the end of August.

As a result of Clipper’s aim to raise capital, shareholder UTC has tabled an indication of interest to acquire the company outright. Any deal is dependent on due diligence being carried out.

UTC took a 49.5% stake for $206.5million in Clipper at the end of last year.

If Clipper is unable to secure the additional financing by September 30, the company said there was "significant doubt of the company’s ability to continue as a going concern".

In July, Clipper reached an agreement with its shareholder UTC for the company to guarantee the turbine manufacturer's warranties.

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