Wednesday, April 3, 9:51 AMBuy German appears to be one of the CBO's preferred options for a tank-like Ground Combat Vehicle that is being developed to replace the Bradley Fighting Vehicle, which is made by BAE (BAESF.PK). The CBO reckons that the U.S. Army could save $14B and get a better product if it chooses the "Puma" over vehicles from GD and BAE. Alternatively, upgrading the Bradley and dropping the GCV would save $9B from 2014-2030.
Tuesday, March 5, 5:37 AM
General Dynamics (GD) shipbuilding unit NASSCO has warned over 1,000 workers of indefinite layoffs that may take effect in late April due to the uncertainty caused by the automatic spending cuts that kicked in on Friday. The warning follows one by BAE Systems last week. The reductions will chop the Pentagon's budget by 7.8%, with all major defense contractors set to be hit.
2 Comments[Top Stories, U.S. Economy]
Friday, February 22, 3:57 AM
Frank Kendall, the Under Secretary of Defense for Acquisition, has authorized the Pentagon's purchasers and program managers to start talking to suppliers about the plans for implementing $46B of automatic cost reductions, which are due to take effect next Friday. The impact of the cuts will be exacerbated by the DOD not receiving an appropriation for this year, with much of its money in the wrong accounts.
1 Comment[U.S. Economy]
Thursday, December 13, 2012, 10:14 AM
United Tech's (UTX) Sikorsky Aircraft and L-3 Communications (LLL) lose out as BAE Systems (BAESF.PK) wins a contract of up to $400M over the next five years to maintain over 300 U.S. Navy trainer aircraft. It's a particular blow for Sikorsky, which was the incumbent. The deal includes an initial base term as well as multiple options.
Tuesday, November 27, 2012, 8:24 AM
BAE Systems' shares rise 2.7% in London, due, say traders, to speculation that Lockheed Martin (LMT) is "showing interest in the U.K. company, which recently tried to merge with EADS.
Thursday, October 11, 2012, 10:15 AM
With defense budgets being slashed around the world, the collapse of the BAE's $45B merger with EADS will put the focus on possible deals between tier-two firms such as Rockwell Collins (COL), L-3 Communications (LLL), SAIC (SAI) and Harris (HRS), industry execs and bankers tell Reuters. Much could depend on whether Congress averts the automatic defense cuts that are due from Jan 1.
Wednesday, October 10, 2012, 8:27 AM
More on EADS-BAE merger breakdown: "It has become clear that the interests of the parties' government stakeholders cannot be adequately reconciled with each other or with the objectives that BAE Systems and EADS established for the merger," BAE says in a statement. The end of the merger is not a huge surprise given that it was dependent on France and Germany agreeing to reduce their influence.
Comment![M&A, Breaking News, Top Stories]
Wednesday, October 10, 2012, 8:02 AM
EADS's $45B merger with BAE Systems could be about to collapse, with Reuters reporting that talks over the deal are deadlocked just four hours ahead of a key regulatory deadline in the U.K. for extending the talks. That will only happen if British, German and French leaders give their approval for further negotiations. (see earlier)
Wednesday, October 10, 2012, 5:54 AM
EADS and BAE Systems have until 5 pm U.K. time (12 noon ET) to decide whether to ask U.K. regulators for more time to finalize their merger plans or to scrap the deal. Doubts are growing about German backing for the deal, with Reuters reporting that Angela Merkel opposes it, although it's not clear why.
Tuesday, October 9, 2012, 8:37 AM
France and Britain narrow their differences over the wording of guarantees on state shareholdings in EADS's $45B merger with BAE Systems, sources tell Reuters, although France is still opposed to a 10% limit on its future stakes in the merged company. The CEOs of the companies are due to meet their boards to discuss whether to apply to extend tomorrow's deadline for a decision on proceeding.
Monday, September 24, 2012, 8:43 AM
Reuters gets hold of a German economy ministry paper that lays out the country's reservations about EADS's proposed merger with BAE Systems. These include guarantees about the future location of factories as being unreliable, highlighting fears about possible job losses. The paper states that France and Germany are seeking a common position. (see BAE threat)
Monday, September 24, 2012, 8:11 AM
BAE has warned it will abandon its proposed €35B merger with EADS if it has to change its Special Security Arrangement (SSA) with the U.S. to "look more like that of EADS," which is stricter, the FT reports. However, the U.S. may not allow BAE to keep its SSA if France and Germany maintain their stakes in the new company. The SSA has allowed BAE to become the Pentagon's most trusted foreign supplier.
Sunday, September 16, 2012, 4:27 AM
Boeing (BA), Northrop Grumman (NOC) and other major U.S. aerospace and defense companies are weighing their responses to EADS's proposed merger with BAE Systems, the WSJ reports. Options include opposing the tie-up or trying to forge their own deals, although companies are unlikely to make immediate moves.
Friday, September 14, 2012, 4:10 AM
BAE will abandon its potential merger with EADS unless the combined entity is allowed to run as a normal company free of the political interference that has dogged EADS, the FT reports. Such a scenario remains far from assured given that France and Germany control 22.5% each in EADS; under the deal their combined stakes would drop to below 10% and the only veto they would retain would be to block hostile takeovers.
1 Comment[M&A, Top Stories]
Thursday, September 13, 2012, 10:18 AM
EADS's merger talks with BAE come as defense budgets are being slashed, and executives and U.S. government officials expect further consolidation in the industry, particularly among smaller and medium-sized players. It might even involve the bigger players: the WSJ speculates that Boeing (BA) could rekindle talks with BAE or carry out a long-rumored tie-up with Northrop Grumman (NOC).