StockMarketWire.com
"Defence contractor BAE Systems has signed a definitive agreement to acquire L-1 Identity Solutions's Intelligence Services Group for $295m.

The group, which is comprised of SpecTal, Advanced Concepts and McClendon, is a leading provider of security and counter threat capabilities to the US Government for cash consideration of $295,833,000 in the aggregate.

The proposed acquisition will be funded from BAE Systems' existing cash resources.

BAE said the SpecTal, Advanced Concepts and McClendon businesses complement the activities of BAE Systems' existing US-based Intelligence & Security sector capabilities and support the company's strategy to develop its customer support and services business.

The acquisition is conditional, among other things, upon receiving certain US regulatory approvals and is expected to close in the fourth quarter of 2010. "

Trinidad and Tobago has reneged on a deal to buy three offshore patrol vessels from BAE Systems, potentially costing the defence company 150m. The ships were built at BAE's yard in Portsmouth and the first was due to be delivered to the Caribbean nation within weeks. Another has just completed its sea trials with a Trinidadian crew and the final ship is about to begin trials, the Times reports.

Not great news skinny, got out @ 334.2.

Amazing though that a possible loss of 150m order can move the sp for a company with a market cap of 11.3bn! I believe they pay more than that in sweeteners to secure orders from friendly nations in the Middle East.

Sentiment re uncertainty of any proposed defence cuts seems to be the order of the day Harry.

Bit of a long shot, left Limit Buy (SB) 338.2 Tgt 350.0 Stop 333.2

Chris this was first shown on Monday (I didn't watch it until last night) - it may have some bearing on your BAE trading!

Hi skinny,

I don't know about you but watching that programme just highlights the fact that the MOD couldn't organise a piss up in a brewery, to many chiefs and not enough indians in the armed forces, grace and favour homes, servants etc at the expense of our front line troops. (No change there then). And BA. would appear to be a recruitment centre for ex- ministers, LOL. Bottom line will be, will the Govt. continue to rely on British defence contractors and continue to back BA. or will they buy off the peg from the USA. What do you think?

As regards trading the stock Limit Buy triggered today :o) tight stop!

Stop moved to entry, risk free trade.

Moved stop to 343.2 to lock in a profit.

Moved stop to 346.2

Yes. DOW dragged eveything up in the last hour or so, after a flat morning. Can't you do a trailing stop, as I can see more upside today & monday?

Closed @ 347.8 + 9.6. That'l do for now Harry :O)

Limit Buy (SB) triggered @ 342.2 Tgt 360.0 Stop 332.2

Out prior to jobs report 342.2 for nowt.

"BAE Systems cut to hold at SocGen, target price 360p."

I went short on Monday - a bit of a no brainer?

BAE gone ex-divi today.

StockMarketWire.com
BAE Systems has completed the acquisition of OASYS Technology LLC, a US manufacturer of electro-optical systems and sub-assemblies.

BAE Systems paid an initial cash consideration of approximately $25m and there is a potential earn out of up to $30m.

Looking for a bounce, though probably dead cat. Limit Buy triggered @ 352.9 stop 345.0.

StockMarketWire.com
Defence contractor BAE Systems said trading for since 1st July has been consistent with its expectations. Changes from the UK Strategic Defence and Security Review are expected to result in some reduction in growth for 2010.

The outlook for 2010 remains subject to commercial discussions regarding cancellation of the Trinidad and Tobago offshore patrol vessel programme. Whilst the financial consequences cannot be definitively assessed at this time, as announced in September, the Group estimates a charge of up to 150m, before tax, may be required in its 2010 accounts.

The US defence market continues to generate a substantial number of business opportunities despite budgetary pressures. These pressures are leading to programme reprioritisations and a drive for greater efficiencies in procurement, which are helping to fund continued modest growth in investment on defence capability. Anticipating these changes, a restructuring of BAE Systems' operations in the US has been undertaken, reducing overhead cost to the benefit of both customers and shareholders.

Pressure to reduce government expenditure in the UK is reflected in the Comprehensive Spending Review. A UK Strategic Defence and Security Review (SDSR) was published in October. BAE Systems will now work with the UK Ministry of Defence to address the detailed implications of the changes identified by the SDSR. The Group believes that it can continue to help in achieving efficiency improvements and value for money enhancement in the way capability is generated and delivered. In aggregate, the Group anticipates some modest impact on performance of its UK business in 2010 from the changes and a reduction in the Group's financial planning assumptions resulting in an approximately one pence reduction in earnings per share, per annum, thereafter.

Previously announced actions to reduce cost across the Group include net headcount reductions of approximately 7,000 (including contractors) in the year to date.

The Group's programme to return up to 500m to shareholders by way of on-market purchases of shares completed in July. The average cost of shares purchased was 3.49.

In August, the Group's $500m (316m) 4.75% bond matured, having been pre-financed by a $1.5bn (949m) bond issuance last year.

Excluding M&A activity, a cash inflow continues to be anticipated in the second half of 2010. Achievement of receipts due on the Salam programme in the final quarter will be a material determinant of the year's cash flow performance.

BAE Systems will announce its financial results for the year ending 31st December 2010 on 17th February 2011.