DRS to L-3: No thanks
Defense electronics maker DRS Technologies Inc., Parsippany, N.J., turned down last month's acquisition proposal from L-3 Communications Corp.
DRS' board of directors unanimously rejected L-3's offer of $42 a share after deciding a merger was not in shareholders' best interest. DRS' shares closed July 13 at $36.26 on the New York Stock Exchange.
DRS rejected L-3's offer because it wants to fully assimilate Integrated Defense Technologies Inc., a Huntsville, Ala., defense electronics company that it bought last year, said Jon Kutler, a founder of Jeffries Quarterdeck, a Los Angeles merger and acquisition firm for defense IT companies.