Harris disappoint after the company formally announced ( June 2 , 2008 ) that it would not be pursuing M&A activity. In a statement directed at recent rumours and research reports, company CEO Howard Lance said that Harris was not “discussing, or examining a sale or merger.”
This comes after the Wall Street Journal reported last week that Harris had received preliminary takeover offers valued at approximately $10 billion. According to “people familiar with the situation,” Harris turned down the said offers as they were below a minimum expected bid of $75-
85. Lance refused to affirm whether or not the company had received any recent proposals, but did acknowledge that Harris had been “approached” from “time-to-time”.
Harris stock plunged on the news, erasing most of a 22% price gain from the past few months. Despite the investor bailout, analysts appear to have confidence in the company, with Raymond James saying, “The
fact management was unwilling to sell at the low $70s price shows they believe in the long-term viability of the company.”
Outlook
Lance agreed with this positive outlook, commenting that the company’s “focus on continuing growth through the introduction
of industry-leading new products, expansion of addressable markets, development of new capabilities, international expansion,
and strategic acquisitions will deliver significant value going forward.”
