BAE Systems needs its proposed merger with Airbus parent EADS to succeed if it is to avoid being cast adrift as a company without a clear strategy in a shrinking industry or a takeover target for predatory U.S. rivals. If the planned $45 billion merger between the British defence group and the European aerospace giant does not go ahead, BAE could look to do a deal with a U.S. group, sell off its standalone U.S. business or remain alone trying to squeeze growth from the contracting global defence sector.Europe's biggest defence deal in a decade faces many hurdles, including a row over the proposed 60/40 EADS-BAE ratio, how to ringfence top-secret projects and how to satisfy governments keen to safeguard EADS operations in France and Germany."BAE see their defence earnings going down, what do they do about it? They either get into bed with someone going up like EADS or they team up with someone who can help them rip a load of costs out and get economies of scale like a Rockwell Collins , a General Dynamics or a Lockheed Martin ," said an equities manager at a British investment house holding a stake in BAE."The conspiracy theorists say BAE are hoping to flush out a bid from one of the U.S. prime contractors."
Rockwell Collins, Inc. (Rockwell Collins) is engaged in the design, production and support of communications and aviation electronics for commercial and military customers worldwide. Shares of COL traded higher by 0.19% or $0.1/share to $52.45. In the past year, the shares have traded as low as $46.37 and as high as $61.46. On average, 972861 shares of COL exchange hands on a given day and today's volume is recorded at 247410.
General Dynamics Corporation is an aerospace and defense company that 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 0.57% or $0.38/share to $66.85. In the past year, the shares have traded as low as $54.72 and as high as $74.54. On average, 1625700 shares of GD exchange hands on a given day and today's volume is recorded at 601631.
Lockheed Martin Corporation is a global security and aerospace company principally engaged in the research, design, development, manufacture, integration, and sustainment of technology systems and products. Shares of LMT traded higher by 0.7% or $0.64/share to $92.14. In the past year, the shares have traded as low as $70.37 and as high as $93.99. On average, 1508750 shares of LMT exchange hands on a given day and today's volume is recorded at 461974.
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