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DE HAVILLAND SOLD TO BOMBARDIER, PROVINCE OF ONTARIO

 DE HAVILLAND SOLD TO BOMBARDIER, PROVINCE OF ONTARIO
 TORONTO, Jan. 22 /PRNewswire/ -- The Boeing Co. (NYSE: BA) today


announced the sale of its de Havilland subsidiary to Bombardier Inc. of Montreal and the Province of Ontario.
 In the transaction, Bombardier will own 51 percent and the Province 49 percent of a newly formed entity, de Havilland Inc.
 While the transaction value will depend on audited figures at closing, de Havilland Inc. will acquire assets of approximately $260 million(Canadian) from Boeing in return for cash of approximately $70 million(Canadian) and the assumption of liabilities of about $190 million(Canadian).
 The purchase will be effective on closing, which is expected to take place within one month.
 In announcing the sale, Bruce Gissing, Boeing Commercial Airplane Group executive vice president and chairman of Boeing of Canada, said, "Nearly two years ago we determined that it would be in de Havilland's best interest to be aligned with an organization more directly tied to the regional aircraft market.
 "We then sought buyers who could protect the long-term interests of de Havilland's customers, employees and suppliers. We are pleased to have accomplished that goal."
 Gissing added that "this sale does not end Boeing's long involvement in the Canadian aerospace industry."
 He said, "Boeing will continue to play an active role in Canada through its facilities in Winnipeg and Arnprior and through its subcontract work with a broad range of Canadian companies."
 Boeing purchased de Havilland from the Government of Canada in 1986. In July 1990, it announced its intention to sell the subsidiary. An agreement was reached with Alenia of Italy and Aerospatiale of France in the Spring of 1991; but this deal later was blocked by the European Commission, which cited its anti-competitive impact on the European market.
 Negotiations with Bombardier and the Province began in October and were concluded today.
 -0- 1/22/92
 /CONTACT: T. Craig Martin, 416-375-3030, or Jack Gamble, 206-237-1715, both of Boeing Commercial Airplane Group/
 (BA) CO: The Boeing Co.; de Havilland Inc.; Bombardier Inc. ST: Ontario IN: ARO AIR SU: TNM


SC -- SE003 -- 2412 01/22/92 15:00 EST
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Publication:PR Newswire
Date:Jan 22, 1992
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