The firm hoped to complete an exit of the business before the end of the year, but any deal would have to be signed off by the government according to a report in the FT.
General Electric is believed to be in the lead to buy Avio ahead of private equity firms Clessidra, CVC and state-backed Fondo Strategico Italiano.
The business, which also supplies engine parts to General Electric, was put on the market as the possibility of a long-awaited Milan listing faded amid continued market volatility in Europe.
The company boasted revenue of over €2bn last year and EBITDA of €384.2m, and could fetch more than €3bn, according to separate press reports.
Safran, a French company that has interests in airplanes, aerospace and defence, was also said to be in active talks to buy the business according to Reuters.
Cinven bought its majority stake in Avio from Carlyle and Finmeccanica in 2006 for €2.6bn.
Most of the company’s business comes from the sale of civil and military engines, while 14 per cent is sourced from space technology and two per cent from civil maintenance.
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