Defence supplier Esterline Technologies stock surges on takeover rumours: report
26 March 2012
The stock of Esterline Technologies Corp shot up on weekend closing after London newspaper The Daily Mail reported that the aerospace and defence parts supplier is a prime takeover target by rivals that include BAE Systems, Boeing Co and Lockheed Martin.
Share price of Washington-based Esterline rose as much as 12 per cent on 23 March after The Daily Mail report, although the newspaper did not cite any sources.
Esterline's stock closed up $6.93, at $75.20 on 23 March, giving it a market capitalisation of $2.31 billion.
Without naming the company, the paper also said that one of the suitors is planning to make a bid of more than $95 a share.
Another UK-based newspaper, The Guardian, also reported that traders suggested BAE Systems was planning to make an offer, while Honeywell International and United Technologies may also be interested in Esterline.
Founded in 1967, New York Stock Exchange-listed Esterline has grown primarily through aggressive acquisitions. Its main area of business are avionics and interface control systems such as pilot displays for commercial and military aircraft and military vehicles, temperature and pressure sensors and fluid- and motion-control components, and advanced materials.