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6/14, 5:00 PM (Source: TeleTrader)
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Indra approaches Rolls-Royce for Spanish unit

Rolls-Royce Holdings Plc acknowledged it has received a preliminary and conditional indication of interest for its Spanish subsidiary ITP Aero. The announcement published on Friday after leaks to the media reveals Indra Sistemas SA is looking at an acquisition of a majority stake in the maker of aeronautical engines and gas turbines based in Zamudio in Biscay. There are several conditions regarding the approach, the British engineering giant said.

"There is no certainty that this will result in a transaction involving ITP Aero. ITP Aero is a key partner for Rolls-Royce, and Rolls-Royce intends to retain a long-term relationship with the business across its civil aerospace and defense programs," the statement adds. The target business was established with Sener in 1989 and Rolls-Royce bought the partner's majority stake a year and a half ago at a valuation of €1.36 billion.

Indra has headquarters in Alcobendas, in Madrid area. It is active in information technology and the defense systems sector. Citi today said there is no rush to sell the unit and downplayed the potential deal's significance for the owner.

Breaking the News / IT