AlliedSignal Reaches Settlement
SOUTH BEND, Ind. (AP) _ AlliedSignal reached a settlement Thursday with aerospace products makers BFGoodrich Co. and Coltec Industries Inc. to end its lawsuit over their proposed merger.
AlliedSignal claimed the deal, which would create the world’s largest manufacturer of aircraft landing gear, would violate its agreement with Coltec to produce landing gear systems that used AlliedSignal wheels and brakes.
The Morristown, N.J.-based manufacturer also claimed the $2 billion merger would create a monopoly by leaving only two suppliers of aircraft landing gear for military and commercial aircraft. It also said the merger could force it to shut down its South Bend plant and lay off 1,000 people.
Indiana Attorney General Jeffrey Modisett, who had filed briefs on behalf of AlliedSignal to stop the proposed BFGoodrich-Coltec merger, announced the agreement without giving details.
But a source close to the negotiations said Richfield, Ohio-based BFGoodrich promised AlliedSignal it would include its wheels and brakes on BFGoodrich landing gears and would also put together joint bids with AlliedSignal.
The source, speaking on the condition of anonymity, said the two sides have worked over the past week to put together a deal to avoid a trial that was scheduled to begin next week in U.S. District Court.
Representatives from Allied, BFGoodrich and Coltec would not immediately comment on the settlement.
Though the settlement ends Allied’s suit, it does not address Crane Co.’s standing in the suit. The Stamford, Conn.-based aerospace components company had filed a suit in New York to stop the merger which was dismissed by district and appeals court judges. Crane then joined AlliedSignal’s lawsuit.
The merger, announced in November, had already passed the scrutiny of the Department of Defense and the Federal Trade Commission. But it was delayed when AlliedSignal filed its lawsuit in February.