Navigate this market better. Subscribe for FREE stock alerts and information.

Thursday, March 12, 2015

U.S. arms buyer sees no cost impact from possible Sikorsky spin, (NYQ: TXT), (NYQ: UTX)

A spinoff of United Technologies Corp's Sikorsky Aircraft as a standalone company should not have any impact on the U.S. Defense Department's costs, the Pentagon's acquisition chief said Thursday. Defense Undersecretary Frank Kendall said he was "neutral" about United Technologies' announcement that it was considering a spinoff of the maker of Black Hawk helicopters."At this point, based on what I know about the deal, I'm neutral about it. It should not impact us as far as cost or rates are concerned," Kendall told reporters after an event hosted by Bloomberg Government.Analysts on Thursday said the potential for a big tax bill means Sikorsky will more likely be spun off into a standalone company than sold outright to possible buyers such as Boeing Co , Textron Inc, Airbus or BAE Systems .Asked about his views on possible consolidation among top tier weapons makers, Kendall said the department was not encouraging such moves by industry despite a downturn in military spending.

Textron Inc. is a multi-industry company engaged in aircraft, defense, industrial and finance businesses to provide customers with products and services worldwide. Shares of TXT traded higher by 1.81% or $0.77/share to $43.37. In the past year, the shares have traded as low as $32.22 and as high as $45.61. On average, 1874670 shares of TXT exchange hands on a given day and today's volume is recorded at 1387798.

United Technologies Corporation provides high technology products and services to the building systems and aerospace industries worldwide. Shares of UTX traded higher by 2.45% or $2.9/share to $121.24. In the past year, the shares have traded as low as $97.30 and as high as $124.45. On average, 3890410 shares of UTX exchange hands on a given day and today's volume is recorded at 4907836.



Source