WASHINGTON: In many respects, the merger announced this morning between ATK and Orbital Sciencesappears just a sensible move between two space and defense companies facing a declining demand for rockets and rocket engines. The Space Shuttle flies no more, leaving ATK without the considerable revenue stream from its reusable solid rocket motor. The United Launch… Keep reading →

WASHINGTON: The federal government shutdown won’t hurt much this week but after two to three weeks, contracts won’t get paid or issued, testing won’t get done. and production of major weapons systems may be disrupted or halted. That was the consensus of several senior defense executives, including Exelis CEO David Melcher, at a gathering held here… Keep reading →

NEW YORK: “It is utterly unconscionable — utterly unconscionable — that Congress will allow sequestration to go on.” Those are the words of Frank Kendall, the Pentagon’s head of acquisition, speaking to an audience of several hundred New York financial types. Kendall is just back from a trip to Afghanistan and he had heard from… Keep reading →

In the aftermath of the EADS-BAE merger being called off, speculation continues about the outlook for defense merger and acquisition (M&A) activity – andwhat impact that will have on government and suppliers.

[Corrected at 4:50 pm to fix misquotation; see note below] With today’s spectacular but not unanticipated collapse of the mega-merger between Airbus parent company EADS and British armsmaker BAE, what’s next? The conventional wisdom is that BAE, the smaller of the two firms, is now vulnerable. But top analysts tell Breaking Defense that, in many… Keep reading →

Paris and Berlin are in a bind as British-based BAE and Franco-German giant EADs, the parent company of Airbus, seek approval to merge into the world’s largest aerospace company. If the French and German governments accept the companies’ current merger terms, their ability to influence the new tri-national behemoth will be sharply diminished and they… Keep reading →

Today’s surprise announcement that UK-based arms-maker BAE and Airbus parent EADS are exploring a merger — sort of, maybe, if their respective boards approve an extremely complex deal that creates a so-called “dual-listed” entity in which each partner still issues its own separate stock — sent shockwaves throughout Europe and through the commercial aviation industry… Keep reading →

General Dynamics buys key subcontractor on its Hydra 2.75-in. rocket: Gayston Corp. of Springboro, OH has 187 employees http://bit.ly/QKLxzG SydneyFreedberg

On the eve of the international Farnborough Airshow, a prominent aerospace and defense analyst says there is a wave of investment ready to pour into the defense sector – but investors are “paralyzed” by the unresolved threat of sequestration. “A lot of people in the industry and a lot of investment capital outside the industry… Keep reading →