02 Jun 06. BAE Systems is poised to kick-start the sale of its 20 per cent stake in Airbus next week by exercising a put option forcing EADS, the Franco-German aerospace group, to buy its shareholding. It looks likely that the two companies will need to appoint an independent bank to determine a fair price for the stake. The two have been haggling over price since BAE, Britain’s biggest defence group, first announced its intention to sell the stake at the beginning of April. EADS already owns 80 per cent of Airbus, the passenger jet maker. BAE is understood to be looking for a sale price of £3bn-£4bn ($5.6bn-$7.5bn), but industry sources said the company was “99.9 per cent certain” to exercise the put option after failing to reach an informal agreement with EADS. The option is expected to be exercised early in the week, starting a formal 15-day process where the two companies’ financial advisers will strive to reach an agreement on price. Further to the statement on 2 May 2006 regarding the sale of its 20% shareholding in Airbus, BAE Systems confirms it has served upon EADS a formal notice of exercise of its Put Option. (Source: FT)
05 Jun 06. Ericsson announces recommended public cash offer of SEK 60 per share in Netwise AB Telefonaktiebolaget LM Ericsson (“Ericsson”) (NASDAQ: ERICY) today announces a recommended cash offer to the shareholders and holders of warrants in Netwise AB (publ) (“Netwise”) to transfer all shares in and all warrants issued by Netwise to Ericsson the (“Offer”). Netwise’s B shares are listed on Nya Marknaden in Sweden. Ericsson and Netwise has today an ongoing co-operation and see further possibilities in combining Netwise’s cutting-edge IP-competence and applications for the enterprise segment with Ericsson’s global presence.
For each share of series A and series B respectively in Netwise a cash amount of SEK 60 is offered.
For each warrant with respect to shares of series B in Netwise a cash amount of SEK 9.30 is offered.
Compared with the average latest share price paid for Netwise’s shares of series B during the last ten trading days before announcement of the Offer of SEK 46.51, the Offer represents a premium of 29 per cent. Compared with the closing share price of Netwise’s shares of series B the last trading day before the announcement of the Offer of SEK 49 per share, the Offer represents a premium of 22 per cent.
Netwise’s Board of Directors unanimously recommends the Offer.
Shareholders in Netwise, together holding approximately 70 per cent of the share capital and 76 per cent of the voting rights in Netwise, have committed to accept the Offer and transfer all these shares in Netwise to Ericsson in accordance with the Offer, provided that no other person makes an offer that is more favorable for the shareholders.
Neither Ericsson nor its subsidiaries presently hold shares in Netwise.
The acceptance period for the Offer is expected to run from June 27, 2006 up to and including August 2, 2006. The estimated date for payment to shareholders is August 11, 2006.
01 Jun 06. L-3 Communications (NYSE: LLL) announced today that it will establish the Homeland Security Group, effective July 24, 2006, to provide oversight, coordination and synergy among the company’s Homeland Security-related businesses. The L-3 Homeland Security Group will consist of the company’s Security and Detection Systems, SafeView, and CyTerra subsidiaries and other Homeland Security operations. The company also announced that Craig P. Coy will join L-3 Communications as president and chief operating officer of the L-3 Homeland Security Group. In this role, Mr. Coy will oversee L-3’s Homeland Security operations and pursuits and coordinate capabilities across L-3’s product lines and divisions to address the growing Homeland Security market. As an addressable market, Homeland Security encompasses a number of product segments including intrusion detection, port, border and airport security, secure communi