BAE Said to Seek Buyers for Control Systems Assets

[SpArK]

BAE Said to Seek Buyers for Control Systems Assets​

September 12, 2010, 11:08 AM EDT

By Jeffrey McCracken and Jacqueline Simmons

Sept. 12 (Bloomberg) -- BAE Systems Plc, Europe’s largest defense company, is seeking buyers for assets in North America that control systems for aircraft and vehicles and could fetch about $2 billion, two people with knowledge of the plan said.

Potential buyers have received information, and first-round bids for the assets are due within the month, said the people, who declined to be identified as the details have not been made public yet. BAE spokeswoman Leonie Foster declined to comment.

The units for sale include those that make hybrid propulsion systems for buses and trucks and another that makes aircraft-engine controls sold to General Electric Co., the people said. The hybrid technology runs in more than 2,000 buses in North America as well as some new models of London’s iconic double-decker red buses.


“These aren’t really core defense businesses, they’re much more civil businesses, so maybe this is just a tidy-up of their portfolio,” said Zafar Khan, analyst at SG Securities in London, who advises investors buy BAE shares.

The propulsion subsidiary is part of a business within BAE’s electronics, intelligence and support division. The unit is based in the U.S. and has 32,000 employees that produces and services systems and subsystems of military and commercial applications, according to BAE.

Flight Controls


The flight controls business in the U.S. includes electronic systems that pilots use to manage a plane, including autopilot systems, and fly-by-wire systems, which guide a jet with electronics instead of mechanical cables and pulleys.

BAE got the business in 1999 when it bought the Marconi electronic defense unit in 1999 from Britain’s General Electric Co. Plc. BAE’s fly-by-wire system was used by Boeing Co. in its 777 model, the first Boeing plane to that technology. The controls are also used on Airbus A320 planes, on Boeing’s C-17 transport, Lockheed Martin Corp.’s F-18 and F-35 planes, and on the Eurofighter combat jet, which is co-produced by BAE.

BAE has expanded in countries such as India, South Africa and Australia, where it purchased Tenix Defense in 2008. Recent acquisitions in the U.S., the world’s biggest defense market, include United Defense Industries Inc., producer of the Bradley Fighting Vehicle.

The Wall Street Journal reported the planned disposals yesterday, citing unidentified people familiar with the matter.


BAE Said to Seek Buyers for Control Systems Assets - BusinessWeek



where is TATA?? They have both buses and civilian aircaft dealings and partnership with Saab .

 

[Capt.Popeye]

^^^
Interesting news. Who knows, it might be of some interest to Anand Mahidra. Did'nt he say someplace that he is interested in expanding his presence in Aerospace and Defence segments ?