ITT Corporation To Buy EDO at $56 Per Share

ITT Corporation (ITT) and EDO Corporation (EDO)announced yesterday that ITT was buying the aerospace and defense contractor for $1.7 billion including debt. EDO shares have been rising rapidly over the past few months, mostly due to counter IED products the company makes. The offer prices shares at a 8.7% premium to the closing price before the deal was announced, but shares of EDO have risen 59.4% over the past three months, making it a fair deal in the eyes of analysts.

Steve Gaffney, president of ITT's defense business stated, "We are confident in our plan to integrate our businesses and unlock tremendous value, creating opportunity for employees, customers and shareholders."

The deal is expected to close in early 2008, after regulatory and shareholder approvals are received.