Andrea's Feed
Sep 5, 2013

U.S. unlikely to block Chinese purchase of Smithfield

WASHINGTON (Reuters) – The U.S. government should soon give the go-ahead for the largest ever Chinese acquisition of a U.S. company: a Chinese food group’s $4.7 billion deal to buy Smithfield Foods Inc (SFD.N: Quote, Profile, Research, Stock Buzz), a person familiar with the matter told Reuters.

Government approval of the purchase of Smithfield by Shuanghui International Holdings would be a major step forward for the deal. But it still needs shareholder approval, and at least one substantial shareholder is looking for a higher price.

Sep 5, 2013

U.S. likely to approve Chinese purchase of Smithfield

WASHINGTON, Sept 5 (Reuters) – The U.S. government is
unlikely to block Chinese meat company Shuanghui International’s
$4.7 billion deal to buy Smithfield Foods Inc on
national security grounds, one person familiar with the matter
told Reuters.

The deal, if approved, would be the largest ever acquisition
of a U.S. company by a Chinese firm.

Sep 5, 2013

35 fighters still highest priority despite budget cuts: Pentagon

WASHINGTON (Reuters) – The Pentagon’s chief arms buyer on Wednesday said he did not expect the U.S. Navy to significantly change its plans to buy F-35 fighter jets built by Lockheed Martin Corp (LMT.N: Quote, Profile, Research, Stock Buzz), despite mounting pressure on the U.S. military budget.

Frank Kendall, undersecretary of defense for acquisition, technology and logistics, told the Reuters Aerospace and Defense Summit that the $392 billion F-35 Joint Strike Fighter was the U.S. military’s highest priority conventional warfare program.

Sep 5, 2013

Pentagon arms chief aims to preserve R&D weapons funding

WASHINGTON (Reuters) – The Pentagon’s chief weapons buyer said he was considering funding early work on a next-generation ground combat vehicle and rotorcraft to ensure the United States maintained its edge in weapons despite steep budget cuts.

Under Secretary of Defense Frank Kendall told the Reuters Aerospace and Defense Summit on Wednesday that he hoped to secure small amounts of funding for work on some leap-ahead technologies in those areas despite the challenging budget environment, although no firm decisions had been made.

Sep 4, 2013

Pentagon sees $20 billion hit in 2014 if budget cuts hold

WASHINGTON (Reuters) – The Pentagon would have to slash its budget by about $20 billion in fiscal 2014 from a year earlier if mandatory budget cuts remain in effect, the chief arms buyer for the U.S. military said on Wednesday, calling that an increasingly likely scenario.

Frank Kendall, U.S. undersecretary of defense for acquisition, technology and logistics, said the cuts would fall disproportionately on the procurement of goods and services, as well as research and development, since it was difficult to harvest savings from personnel accounts on short order.

Sep 4, 2013

Pentagon mulls funding for cutting-edge rotorcraft

WASHINGTON, Sept 4 (Reuters) – The Pentagon’s chief weapons
buyer said he was considering funding early work on a
next-generation rotorcraft, citing concerns that budget cuts
could erode the United States’ high-technology edge.

In order to fund work on technology for new rotorcraft,
Frank Kendall, undersecretary of defense for acquisition,
technology and logistics, said on Wednesday he would have to
waive rules that ban the start of new weapons programs whose
production could not be supported by current funding levels.

Sep 4, 2013

Boeing confident on South Korea’s biggest defense deal

WASHINGTON/SEOUL (Reuters) – Boeing Co (BA.N: Quote, Profile, Research, Stock Buzz) is confident of winning South Korea’s biggest defense deal, company executives said, although defense sources said many in Seoul’s military establishment prefer rival Lockheed Martin Corp’s (LMT.N: Quote, Profile, Research, Stock Buzz) costlier stealth fighters.

Boeing’s defense division president and chief executive Dennis Muilenburg told the Reuters Aerospace and Defense Summit in Washington on Tuesday that the U.S. company expects its F-15 Silent Eagle will help it clinch the $7.4 billion fighter contract, with a decision expected within weeks.

Sep 4, 2013

Executives say Syria crisis shows U.S. budget cut flaw

WASHINGTON (Reuters) – Top U.S. weapons makers on Tuesday said the crisis in Syria showed the need to halt more than $500 billion in mandatory defense spending cuts and ensure that the U.S. military is sufficiently funded to deal with such contingencies.

The executives told the Reuters Aerospace and Defense Summit they expected cuts and cancellations to big weapons programs in 2014, unless Congress acted to reverse those cuts, which are being implemented under a process called sequestration.

Sep 3, 2013

Boeing sees decision on South Korea fighter competition in 2-3 weeks

WASHINGTON (Reuters) – Boeing Co (BA.N: Quote, Profile, Research, Stock Buzz) said it expects South Korea to complete its assessment of bids for a $7.4 billion fighter contract within weeks, and is confident its F-15 Silent Eagle offering will secure the deal.

“Our understanding of the process is that it will be completed over the next two or three weeks,” Dennis Muilenburg, president and chief executive of Boeing’s defense division, told the Reuters Aerospace and Defense Summit on Tuesday.

Sep 3, 2013

Lockheed braces for program cuts, delays due to U.S. budget woes

WASHINGTON (Reuters) – Lockheed Martin Corp (LMT.N: Quote, Profile, Research, Stock Buzz) is bracing for cuts and delays next year in major weapons programs, including a new coastal warship it builds for the U.S. Navy, unless Congress acts to reverse mandatory reductions in U.S. military spending, a top company official said Tuesday.

Dale Bennett, executive vice president of Lockheed’s Mission Systems and Training division, said the company was already seeing a slowdown in programs and declines in contract awards as result of spending cuts required under a process known as “sequestration,” and the situation could worsen next year.