Seeking Alpha

Textron to buy Beechcraft in $1.4B deal: FT

  • Textron (TXT +2.9%) will buy Beechcraft for $1.4B, FT reports.
Comments (2)
  • I hope this dog has its year. I have a small amount of [TTX] and was about to drop it.
    21 Dec 2013, 06:11 PM Reply Like
  • Textron the company has been getting worse. Textron the stock has been getting better. This company is a textbook example of why perfect pricing in the market is a myth akin to bigfoot, lockness or megladon.

     

    Last quarter TXT reported a miss in earnings, a miss on revenues and lowered their outlook. That's stabbed, shot and poisoned for the new people where investing is concerned. They haven't restored their buyback or raised their dividend since they were both cut back in 2009. But at the end of the day after they gave that terrible report they were up a dollar.

     

    So what gives?

     

    Textron has a activist investor( Rumored to be the head of Amazon J.B.) trying to position himself for a takeover. Congress has reached a two year budget deal that will avoid the automatic cuts that would have otherwise threatened Textron's biggest money maker Bell and Donnelly Textron's CEO has brokered a tentative deal for what's left of Beachcraft.

     

    Will the 1.4 billion in new debt be the parachute Textron's been looking for? Will the failed business of Beachcraft be the tonic that drives out the cancer. The perfect pricing of the market(Haha) seems to think so.

     

    This one's a little scary. 0_0
    22 Dec 2013, 07:21 AM Reply Like
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