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Wednesday, October 5, 2011

TAKEOVERCH​ATTER-Buye​rs circle Comtech amid activist pressure, (NASDAQ: CMTL), (NYSE: GS), (EAD), (NYSE: GD), (NYSE: LLL), (NYSE: HRS), (BAES)

Communications equipment maker Comtech Telecommunications Corp (CMTL.O), under pressure from an activist investor to evaluate a sale, is attracting potential takeover interest from several government contractors, people familiar with the situation said. Comtech, which makes satellite-based communications equipment for the government and commercial customers, is working with Goldman Sachs Group (GS.N) for defense and strategic advice in response to pressure from New York-based hedge fund MMI Investments LP, four of the people said. It is unclear if Comtech would be receptive to a sale at this point. But the list of potential suitors could include EADS (EAD.PA), General Dynamics Corp (GD.N), L-3 Communications (LLL.N), Harris Corp (HRS.N) and BAE Systems Plc (BAES.L) among others, according to the people familiar with the situation. No bid has been made for Comtech, and it remains to be seen if any of the potentially interested parties would actually step up to make an offer for Comtech. The U.S. defense industry is grappling with uncertainty presented by looming budget cuts and the pullout of troops from the Middle East.

Comtech Telecommunications Corp. (Comtech) designs, develops and markets products, systems and services for communications solutions. Shares of CMTL traded higher by 0.82% or $0.23/share to $28.20. In the past year, the shares have traded as low as $23.51 and as high as $32.00. On average, 370431 shares of CMTL exchange hands on a given day and today's volume is recorded at 909688.

The Goldman Sachs Group, Inc. (Goldman Sachs) is a bank holding and a financial holding company. Shares of GS fell by 0.31% or $-0.29/share to $94.29. In the past year, the shares have traded as low as $84.27 and as high as $175.34. On average, 8079840 shares of GS exchange hands on a given day and today's volume is recorded at 8455466.

General Dynamics Corporation offers a portfolio of products and services in business aviation; combat vehicles, weapons systems and munitions; military and commercial shipbuilding, and communications and information technology. Shares of GD traded higher by 1.89% or $1.07/share to $57.71. In the past year, the shares have traded as low as $53.95 and as high as $78.27. On average, 2642570 shares of GD exchange hands on a given day and today's volume is recorded at 2513407.

L-3 Communications Holdings, Inc. (L-3) is a prime contractor in Command, Control, Communications, Intelligence, Surveillance and Reconnaissance (C3ISR) systems, aircraft modernization and maintenance, and government services. Shares of LLL traded higher by 2.46% or $1.53/share to $63.85. In the past year, the shares have traded as low as $58.30 and as high as $88.55. On average, 1118270 shares of LLL exchange hands on a given day and today's volume is recorded at 792322.

Harris Corporation (Harris), together with its subsidiaries, is an international communications and information technology company serving government and commercial markets in more than 150 countries. Shares of HRS traded higher by 1.87% or $0.64/share to $34.92. In the past year, the shares have traded as low as $33.23 and as high as $53.39. On average, 1616100 shares of HRS exchange hands on a given day and today's volume is recorded at 973105.