Clipper in talks with UTC over possible takeover

Steve Dinneen
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Wind turbine maker Clipper Windpower is in talks with major shareholder United Technologies Corp (UTC) over a takeover or financing deal as it seeks additional capital to continue operating.

Clipper, which is burning through cash, said UTC had indicated it would be willing to acquire the remaining shares in Clipper it does not already own, subject to due diligence and other terms and conditions.

UTC may now increase its stake to 55 per cent after invoking a cash outflows clause in the subscription agreement signed earlier this year.

It had previously been limited to a 49.9 per cent stake until January 2012. Clipper said along with the acquisition talks, it is also looking at raising capital and credit lines with financial providers and negotiating with UTC on additional credit support.

It expects revenue to fall to between $150m (£96m) and $154m from $357.3m after selling only 43 turbines in the last quarter, compared with 127 for the same time last year.