Will Lockheed Martin Buy Sikorsky Aircraft

Will Lockheed Martin Buy Sikorsky Aircraft

This is interesting. What do you think the move here is for besides just consolidation?

Patents? Contracts?

Defense is an industry with a rich history of consolidation. And we may be looking at yet another blockbuster acquisition with Lockheed Martin Corp. (NYSE: LMT) prepared to fork over $8 billion for United Technologies Corp.'s (NYSE: UTX) Sikorsky Aircraft.

But will Lockheed Martin buy Sikorsky Aircraft?

It's certainly an intriguing purchase – as is LMT stock.

a reply to: grey580

Not quite sure why they are referring to consolidation, it is just one defense conglomerate acquiring part of the portfolio of another conglomerate.

With the S-97 performing brilliantly in trials and the solid commitment to the Blackhawk I could see LM gaining huge leverage.

a reply to: grey580

Hmm, I wonder who Sikorsky worked with on the stealth Blackhawks?

a reply to: Northernhollow

In the near future, the attributes of the typical helicopter of today will relics of a bygone era. Sikorsky knows this if they have seen even one credible report of a triangle in motion.

This is part of the problem of introducing a new technology into an old industry. Do you save the old mainstays, let them down easy or let them be shut out of the changing market? In good sense you fold them into the group of those that will be the primary forces in the new technologies.

Lockheed will love 'em, but they won't be building 'copters there much longer.

The deal will be announced Monday. Lockheed agreed to purchase Sikorsky for $8B.

mobile.reuters.com...

a reply to: Zaphod58

Interesting. A soild acquisition. I do wonder about the timing. An announcement such as this, right before a certain other announcement is curious.

One would think management would be hesitant to move ahead with this buy, if there was a chance to lose a hugh revenue stream.

a reply to: Imperium Americana

All the evidence points to the bomber going to LM.

a reply to: Imperium Americana

I think one way or another LM is getting a huge revenue stream in the near future. Either the bomber or the fusion reactor. Both have giant dollar signs attached to them if they succeed.

a reply to: Zaphod58

I wonder if the decision has been, unofficially, relayed? LMT is almost at an all time high. So perhaps the projected win is already priced in a bit? If it slips in the next week, I might pick up some more shares.

Didn't the official announcement get pushed back?

a reply to: Imperium Americana

They're looking at August, possibly September trying to cross all the Is and dot all the Ts.

The deal was for $9B. It will conclude late this year or early 2016 if all goes well.

Lockheed may sell off their information systems division and part of its missile division.

www.engadget.com...

a reply to: Zaphod58

Ha! And to delay long enough for Lockmart to finalize the acquisition from UTX. Wouldn't want United to know you just picked up fat stack from Uncle Sam until after the deal was done.

a reply to: Imperium Americana

Northrop is almost certain to protest. By delaying it a couple months, allowing Northrop to demonstrate they're aircraft after the grounding they reduce the chance of both a protest and a successful protest that forces them to start over again.