Lockheed Martin mulls merger of some services units
Published :Sunday, 4 October, 2015, Time : 12:00 AM View Count : 19
Oct 3: Lockheed Martin Corp (LMT.N) is exploring merging some of its information technology and services businesses, with a value of about $4 billion, with another government services contractor, people familiar with the matter said on Friday. The contemplated transaction would create the largest government services contractor in the United States and would generate an estimated $2 billion windfall for Lockheed, the people said. Lockheed, the Pentagon's largest supplier, is looking to pay down debt following its agreement in July to acquire Sikorsky Aircraft, the helicopter unit of United Technologies Corp (UTX.N), for $9 billion in cash. CACI International Inc (CACI.N) and Science Applications International Corp (SAIC.N) are in early-stage talks with Lockheed about a so-called Reverse Morris Trust (RMT) deal for the assets, a transaction that would avert a hefty tax bill, the people said. ?Reuters