Aerojet Rocketdyne gains on report of talks with strategic buyers
Aug. 23, 2022 12:42 PM ET
Aerojet Rocketdyne Holdings, Inc. (AJRD)GE,
LMT,
LDOS,
HWM
Aerojet Rocketdyne (NYSE:
AJRD)rose 3.7%on a report that the rocket company has had recent discussions with a few strategic buyers about a potential deal.
The talks were at an early stage and no deal is imminent, according to a Dealreporter item.
The report comes after FTC filed a
lawsuit in late January to block Lockheed Martin's (
LMT) $4.4 billion purchase of Aerojet (
AJRD). Lockheed
terminated the dealin February.
The Dealreporter item highlighted that activist investor Elliott Management, which
disclosed a 3.7% stake in AJRD its most recent 13-F filing, is also a large holder of Howmet Aerospace (
HWM). A source speculated that a Howmet potential deal with Aerojet may make sense. Elliott and Aerojet (
AJRD) have yet to engage, according to one source.
GE Aerospace, which will soon be spun off from General Electric (
GE), also may be a good fit for Aerojet (
AJRD), according to Dealreporter. Leidos (
LDOS) may be another potential logical buyer for AJRD.
The M&A report comes after Aerojet Rocketdyne (
AJRD) CEO Eileen Drake in late June defeated Chairman Warren Lichtenstein in a proxy battle and had her
e ntire slate elected to the board of the rocket-engine maker.