BAE looking to auction asrospace business units for up to $2bn
BAE Systems Plc plans to auction off some of its North American aerospace business units, which the UK-based defence company could fetch as much as $ 2 billion, according to a media report.india Updated: Sep 12, 2010 20:27 IST
BAE Systems Plc plans to auction off some of its North American aerospace business units, which the UK-based defence company could fetch as much as $ 2 billion, according to a media report.
"BAE Systems Plc has put parts of its North American commercial aerospace business up for sale in an auction that could fetch up to USD 2 billion," The Wall Street Journal said in a report, quoting people familiar with the matter.
According to the report, one of the units on the block makes aircraft engine controls for General Electric Co. The other units include a commercial avionics business and a division that makes hybrid propulsion systems for buses and trucks, the WSJ said.
These units are grouped together under BAE "platform solutions" business, which sells various control systems used in commercial and military aircraft and ground vehicles.
The report said the seller could seek between $ 1.6 billion and $ 2 billion for the units.
BAE's financial advisers, JP Morgan Chase & Co and Wells Fargo & Co, have sought initial offers for the assets by next week, WSJ said, quoting people familiar with the matter.
The report added that rival aerospace and industrial component manufacturers such as Rockwell Collins Inc, Woodward Governor Co, or Moog Inc, as well as private equity firms such as Warburg Pincus and Carlyle Group and transportation-focused Greenbriar Equity Group LLC, could be interested buyers for all or some of the assets.
BAE Systems is a global defence, security and aerospace company with approximately 107,000 employees worldwide. The company delivers a full range of products and services for air, land and naval forces, as well as advanced electronics, security, information technology solutions and customer support services.
In 2009, BAE Systems reported sales worth 22.4 billion pounds ($ 36.2 billion).
First Published: Sep 12, 2010 20:25 IST