Update: Add “NOT” - EADS/Astrium “Generally interested” in Acquiring GeoEye or DigitalGlobe

And, just like that a colleague overrides the statement, but not before both GeoEye and DigitalGlobe stock prices jumped!

- Reuters

--- original post 9 am EST ---

Europe’s leading space company, Astrium, is “generally interested” in acquiring one of two U.S. digital imagery providers, GeoEye or DigitalGlobe, and would look carefully at a deal if the price was affordable, a top Astrium executive told Reuters on March 13.

Evert Dudok, chief executive of Astrium Satellites, said the company’s parent, Europe’s EADS, was actively looking for takeover targets in the U.S., and either of the two companies would be a good fit with Astrium, which is ranked No. 3—behind them—in the geospatial information market.

There hasn't been any activity, but the company is looking to expand in the US. Both of the US companies do a lot of work for the US government, so that could be an issue for an overseas buyer. GeoEye has actively sought a buyer in the past, but DigitalGlobe has not made any such activity public, if it has done so.

- Reuters/Aviation Week

DigitalGlobe, GeoEye on Rollercoaster Stock Ride

Yesterday I noticed that DigitalGlobe's (DGI) stock was getting creamed but couldn't find any reason why. And concurrently, GeoEye (GEOY) took it on the chin as well. Both were down yesterday, yo-yoing between 10-20%. Today both have rebounded up 6%-7%. The bad news is already out there about the defense budgets and EnhancedView programs. But, leave it to the Motley Fool, which seems to have a bead on these stocks, to get the answer.

Analysts at Wall Street firm Dougherty & Co. may have a bullish buy rating on DigitalGlobe shares, but it looks like they helped drive today's less-than-bullish action. Dougherty left the buy rating in place, but dropped its price target on DigitalGlobe's shares nearly 40%, from $38 to $23.

EnhancedView Could Take $50 Million Hit - Aviation Week

Aviation Week is reporting that the National Geospatial-Intelligence Agency (NGA) may be forced to renegotiate the EnhanceView contract with GeoEye and DigitalGlobe due to an expected $50 Million cut to the agency's 2012 fiscal year budget with the prospect of more cuts in fiscal 2013. The original EnhancedView contract was $7.3 billion over 10 years and was signed in 2010. The contract was roughly split between the two commercial satellite providers. According to a source cited by Aviation Week:

“You’re going to have to find a way to probably restructure the current service-level agreements with both companies if they’re going to take $50 million out,” says one geospatial-intelligence industry official familiar with EnhancedView. “Any reduction in the budget on the service-level agreement means you’re changing the scope of the contract and you have to renegotiate.”

Last week we reported that NGA was going to procure less imagery in 2013 but that Pentagon investments in new spacecraft would continue.

Motley Fool, Barron’s Weigh in on DigitalGlobe, GeoEye

The Motley Fool, the finance and stock watching publication, has been watching the commercial, earth observing satellite providers GeoEye (GEOY) and DigitalGlobe (DGI). So has that other financial publication, Barrons.

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Congressmen Ask Administration to Fund Remote Sensing Efforts Amid Planned Cuts

In a letter to Defense Secretary Leon Panetta and National Intelligence Director James Clapper and twelve members of Congress ask for continued funding for the EnhancedView satellite program.  Current cuts could damage it and unfund the work of GeoEye and DigitalGlobe.

- BusinessWeek