Aerojet Rocketdyne jumps 7% on report it's soliciting acquisition offers
Oct. 25, 2022 9:09 AM ETAerojet Rocketdyne Holdings, Inc. (AJRD)LMT, HWMBy: Joshua Fineman, SA News Editor21 Comments
- Aerojet Rocketdyne (NYSE:AJRD) soared 7.2% in premarket trading on a report that it's soliciting offers from potential suitors.
- Aerojet (AJRD) is working with advisers on an auction process and asked for indications of interest earlier this month, according to a Reuters report, which cited people familiar. Aerojet could still decide not to sell itself if it doesn't get an offer it believes is attractive.
- The Reuters report comes after Dealreporter in August said that the rocket company has had recent discussions with a few strategic buyers about a potential deal.
- The Dealreporter item highlighted that activist investor Elliott Management, which disclosed a 3.7% stake in AJRD in its most recent 13-F filing, is also a large holder of Howmet Aerospace (HWM). A source speculated that a Howmet potential deal with Aerojet may make sense.
- A potential Aerojet (AJRD) sale comes after FTC filed a lawsuit in late January to block Lockheed Martin's (LMT) $4.4 billion purchase of Aerojet (AJRD). Lockheed terminated the deal in February.