THE dawning of another new year brought mixed fortunes for two Manchester companies beset by uncertainty and speculation.

The good news was that Fermec, the Trafford Park construction equipment company, had at last been cleared for sale to the US Terex Corporation by European Union regulators.

The bad news was that Powernet, the troubled Internet telecoms company, was to be wound up after efforts to find a buyer came to nothing.

Fourteen months of uncertainty have elapsed since Fermec's previous owner was ordered by European Commissioners to dispose of it to complete a merger with rival New Holland.

Since then, one potential sale has fallen through and 135 jobs have disappeared. But unions are now confident that the future prospects are looking rosy for the remaining 300-strong workforce.

"The Manchester team is highly respected for its innovation, quality and commitment to customer satisfaction," said Terex's UK managing director, Colin Robertson.

Terex regards some Fermec products, such as the backhoe loader, as world leaders in their field.

"Terex Corporation is expanding its portfolio of construction companies and we shall work closely with the Fermec personnel to maximise their considerable sales and market opportunities, particularly in the US, which is the world's biggest consumer of the backhoe loader," said Mr Robertson.

Meanwhile, at Salford Quays, Powernet creditors were being called together to hear the news of the winding-up, following the October crash.

The swing in market sentiment away from dot- com companies had exerted a distinct effect on efforts to sell Powernet, said administrator Simon Allport, and despite interest from five potential buyers, no sale agreements could be reached.

Around 70 people have lost their jobs and investors have little chance of getting their money back.

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