L-3 Communications Holdings, Inc. (NYSE:LLL)

CAPS Rating: 4 out of 5

The Company is a prime system contractor in aircraft modernization and maintenance, Command, Control, Communications, Intelligence, Surveillance and Reconnaissance systems and government services. Also supplies high technology products and systems.


Player Avatar TMFDeej (99.26) Submitted: 6/22/2011 4:25:46 PM : Outperform Start Price: $78.41 LLL Score: -17.64

Relational Investors just reported that it is now the largest shareholder of the defense contractor L-3. I have had success following this activist investor in the past. Most recently when it successfully pushed for the break-up of ITT.To unlock value, Relational is pushing for a the sale or spin-off of business units that it believes are dragging down L-3's performance. This may include the sale of the company's low-margin, no growth government-services division and its aircraft-maintenance division. Divesting these businesses would enable L-3 to focus its resources on growing its high-margin businesses, including such as electronic systems and surveillance / intelligence. Deej

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