Bloomberg reported, citing sources close to the matter, that General Electric is in talks to acquire Italian defense company Avio SpA from private equity firm Cinven, after Cinven refused a previous offer from two other private-equity firms.

CVC Capital Partners and Clessidra SGR had originally offered €3 billion for Avio and the sources say that they have no plans on offering any more, leaving the door open for GE. Avio currently makes components for GE’s GEnx engine which powers the Boeing (BA) 787 Dreamliner as well as the 747-8 wide-body. Additionally, it is a supplier to CFM International, a joint venture between GE and Safran that makes engines for the 737.

Cinven originally planned to bring Avio to the markets with an IPO last year, but postponed to listing due to adverse market conditions.

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