Strategy also applies to corporations.
BAE Systems (formerly British Aerospace) is selling its 20% stake in Boeing's arch-rival Airbus. The deal could be worth between $5.0-7.5 billion when all is said is and done, and BAE's CEO says it's intended to free up resources for more aggressive pursuit of the transatlantic defense market (i.e. America). That's interesting in and of itself, especially after their multi-billion 2005 acquisition of M2 Bradley and M113 manufacturer United Defense LP.
My DID article explains what's going on, and looks at the corporate strategy and issues underlying BAE's calculations. Q: What does BAE's sale of its Airbus stake have to do with increasing numbers of US military aircraft that are older than their pilots? DID suggests a potential answer....
Play among the Big Fishes in the U.S. Defence Market and forget about French interference in your business: go west.
I've got another possible for you... Honeywell, who spent last year sprucing up their balance sheet by laying off scores of FTE's (Full-Time Employees). As one of these liberated FTE's (the grass truly is greener), I can tell you that the scuttlebut around the water cooler at Honeywell last year was all about who was going to buy them. My bet was that GE was planning another run, (they're in court in Europe over the previous blocking of the GE-Honeywell merger right now), but could BAE be the dark horse instead of United Technologies? We'll see. I think I'll leave that company stock in my 401K for a few more months. ;-)
Interesting. Electronics and some engines, and the engines could have a strong maintenance component to them built on long-term contracts.
Might fit. Hanging on to that stock could be wise.