Defense contractor L-3 Communications Holdings Inc. (LLL) will
likely divest some cheaper assets in services but has no plans for
a breakup or broad portfolio overhaul, Reuters reported Wednesday,
citing people familiar with the situation.
New York-based L-3, which is being pushed by activist
shareholder Relational Investors LLC to break itself up, is
considering spinning off or selling a part of its
government-services division that it views as nonstrategic, the
sources said.
Those assets could together attract a sale price of about $1
billion -- about a quarter of the division's $4 billion sales in
2010, the people said.
Relational, whose 6% stake makes it the biggest single
shareholder in L-3, wants the company to sell or spin off its
government services as well as aircraft modernization and
maintenance operations, Reuters cited a person close to the
investor as saying previously.
Representatives for L-3 declined to comment to Reuters.
Relational wasn't immediately available to comment.
Full story at
http://www.reuters.com/article/2011/07/13/l-3-activist-idUSN1E76C0RF20110713
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