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Easy $6+ gain possible at TXT with $20+ buyout, now at $14+

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April 09, 2009 – Comments (3)

Easy $6+ gain possible at TXT with $20+ buyout, now at $14+

3 Comments – Post Your Own

#1) On April 09, 2009 at 11:21 AM, TLStockPicks (88.49) wrote:

Middle Eastern buyers?  Uh oh.  One word: CFIUS.  Actually, that's like 8 words rolled into a 5 word abbreviation.

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#2) On April 09, 2009 at 11:25 AM, IBDvalueinvestin (99.64) wrote:

Mideast group eyes Textron for $21 a share - report Shares surge nearly on latest takeover speculation

(TXT hit $15.90 in pre-market.)

By Christopher Hinton, MarketWatch Last update: 10:52 a.m. EDT April 9, 2009 Comments: 4 NEW YORK (MarketWatch) -- Shares of Textron jumped 50% at the open Thursday after a Kuwaiti newspaper reported a group of United Arab Emirates companies and a Kuwaiti firm would like to buy the maker of Cessna jets and Bell helicopters. Citing unidentified sources, Al-Watan Daily said the unidentified group was offering $21 a share for the Providence, R.I., company, according to a report from AFP. The consortium would reportedly take the commercial side of Textron's (TXT:Textron IncNews , chart , profile , more  Last: 13.48+4.37+47.95%
11:23am 04/09/2009
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TXT 13.48, +4.37, +48.0%) aerospace business and sell the military side to a U.S. company, the newspaper said. A spokeswoman at Textron declined to comment. Textron has been facing a liquidity crisis due to future write offs in its financial arm. The company also has a total debt standing at $9.3 billion, or $39 a share, according to a March 2 note from Cowen & Co. Executives have said they would consider selling some of their core assets if necessary, but also said as late as March 31 that they are ahead of schedule in improving Textron's financial position. Wall Street analysts have said no one would want to buy the entire company because of crisis in Textron Financial. But Macquarie Research analyst Robert Stallard said a purchase by a Middle East consortium makes more sense than earlier rumors that large military contractors were potential acquirers. "A couple of entities in the [Middle East] region have a track record of investing in aerospace, and the region as a whole has been a long-term purchaser of business aviation, and so we believe there is good awareness of the value of the Cessna brand, even if it is in a downturn at the moment," Stallard said in a note to investors. See related item. "The report that it would be looking to sell Textron's defense assets is also sensible, in our view, thus avoiding any potential U.S. national security concerns relating to Bell and Textron Systems," the company's two military providers, Stallard said. Earlier this week, rumors circulated that either Lockheed Martin Corp. (LMT:Lockheed Martin CorpNews , chart , profile , more  Last: 72.93+0.23+0.32%
11:22am 04/09/2009
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LMT 72.93, +0.23, +0.3%) or Raytheon Co. (RTN:raytheon co com newNews , chart , profile , more  Last: 42.48+0.72+1.72%
11:22am 04/09/2009
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RTN 42.48, +0.72, +1.7%) were looking to buy the entire company, helping push Textron stock up more than 20% this week at the close Wednesday. Shares had been down about 65% since September. Textron last traded at $13.66, up 50%. The stock topped $15.90 in pre-market action. Neither Lockheed nor Raytheon would comment on the rumors. Christopher Hinton is a reporter for MarketWatch based in New York.

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#3) On April 09, 2009 at 11:42 AM, IBDvalueinvestin (99.64) wrote:

live on headlines TXT says won't comment. You know what that means , its true $21/shr..

If it wasn't true they would have said its rumor is false.

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