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Mon, Mar 07, 2005

BAE Systems Moving In

Would Become Sixth-Largest DOD Contractor

Europe's biggest defense contractor is making a move to become established in the US. BAE Systems is buying United Defense Industries for $3.97 billion.

"We are very comfortable with the price we have paid, we think it's a fair price," BAE Chief Executive Mike Turner told reporters on a conference call, noting United Defense's rapid growth and profitability. He was quoted by Reuters.

United Defense builds missile systems, along with combat vehicles, artillery systems and precision weapons. The BAE-United Defense deal would make the new corporate entity the Pentagon's sixth-biggest contractor.

FMI: www.baesystems.com, www.uniteddefense.com

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