Aerojet rises on $4.7 bln L3Harris deal

Aerojet Rocketdyne Holdings

19/12/2022 10:49

** Shares of U.S. rocket maker Aerojet Rocketdyne Holdings
Inc  AJRD.N  rose 0.5% to $55.15 premarket
    ** Defense contractor L3Harris Technologies Inc  LHX.N  said
on Sunday it would buy Aerojet in a $4.7 bln all-cash deal, to
tap into rising demand for missiles amid the Ukraine conflict 
    ** The offer price of $58/shr represents a 6.5% premium to
Aerojet's last closing price 
    ** Shares of L3Harris shed 1.5% in low volumes
    ** Jefferies downgrades Aerojet stock to "hold" from "buy",
after news of the acquisition on the unlikeliness of a higher
bid, but sees high chance of close amid minimal regulatory snags
    ** Cowen & Co sees Aerojet as a unique strategic asset with
product lines in critical, fast-growing areas for L3Harris,
expects a thorough but quick FTC review 
    ** As of Friday's close, AJRD has climbed over 17% for the
year, while LHX shares stayed flat 
 (Reporting by Shreyashi Sanyal)
 ((Shreyashi.Sanyal@thomsonreuters.com))