LONDON: The British company, BAE Systems, is planning to sell some part of its American intelligence and security business.
The Europe’s biggest defence contractor has already hired advisers to carry out a review of its US-based IT and analysis support businesses in a move that could lead to their sale. The company said that it had received a number of enquiries from potential buyers but there was no certainty a transaction would result from the review.
The businesses are part of BAE’s Intelligence and Security divisions and mainly serve the US government. The review does not include core services such as support for naval ships in the United States and Britain, or commercial services operations.
Shares in the company rose 4 percent in early trade and were 1.8 percent higher at 513 pence by 0746 GMT, putting them among the biggest gainers on the UK benchmark FTSE 100 index.
“It doesn’t signal a change of strategy, it is just the continual process of review and in this case something that has been triggered by an approach,” said analyst Edward Stacey at Espirito Santo Investment Bank.
“The upside is that it shows that they are willing to be proactive” he said, adding a share buyback could be a possibility for the firm, whose profits have been hit in recent years by government spending cuts. BAE said it would make a further announcement if appropriate.
