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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.
Per Wall St. Cheat Sheet via DealReporter:
GeoEye (NYSE:GEOY) is claiming its sale process has been suspended, ...
Best I can tell that means sale of the whole comapny, not necessarily just MJ Harden which was apparently pondered for sale separately. The stock took a 6% dive after the news of the sale end came out yesterday.
Further complicating GeoEye’s 2011 picture is the performance of its M.J. Harden aerial-imagery unit, which depends in large part on contracts from state and local governments whose budget picture is in some cases even worse than that of the U.S. federal government.
Dulles, Va.-based GeoEye said it is reviewing the costs associated with the M.J. Harden operation and may ultimately decide to sell it.
That's the word from a conference call with investors after the company announced earnings on Tuesday (press release).
Sources suggest a deal is weeks away and won't reveal much about suitors but several firms came up (Providence Equity Partners, KKR, and Blackstone ) as did BAE which does not yet have a spot in the U.S. space market.
- dealReporter via Financial Times
GeoEye's (GEOY) stock has jumped 17% at midday. Not much on Twitter or other news sources as there is only speculation about the company being a likely takeover target. According to StreetInsider who cited DealReporter, the company has hired Goldman Sachs. Possible bidders include BAE, Northrop, Raytheon and Harris, the usual cadre of defense contractors. And "The Fool.com" believes you shouldn't "read too much into the rumor." But they do think that GeoEye may be an inexpensive investment at this point due to the fact that the satellite business has a high barrier to entry and their forward P/E looks inviting. As the defense business slumps due to Pentagon budget cuts, these contractors might be looking for a company with a long-term govenment data contract already locked down.
