Time seems to be running out for injection moulding machinery manufacturer Sandretto (Collgeno / Italy; www.sandretto.it). Alongside the difficulties faced in recent months or, to be more accurate, years, which culminated in the company being placed in administration, the European Commission has now launched an investigation into state aid granted by the Italian government. The decision comes at a time when the administrator Piercarlo Castagnetti is searching desperately for a buyer for the ailing company. At the end of November he was still confident that Sandretto would be able to start the new year under new ownership.

On 16 April 2008 the EU competition commissioner Neelie Kroes announced the opening of an investigation into whether the six-month period for state aid to rescue companies in financial difficulties had been overstepped. The Italian government granted Sandretto a EUR 5m guarantee in January 2007.

The company’s prospects are far from rosy at present: the latest four bidders, including Korbinian Kiesl of Billion (Bellignat / France; www.billion.eu), have withdrawn and the sale is apparently being hampered by the Italian trade unions, which want the new owner to keep both sites and all jobs. The Economic Development Ministry has embarked on the latest round in the bidding process and has set the end of May as the new deadline. However, experience suggests that this will be extended, as it has been in the past.