BAE pulls out of sale

11th Jan 2011 14:44

Defence giant BAE Systems is no longer pursuing the sale of its Platform Solutions business after failing to reach an agreement with potential buyers.The sale for its aerospace component unit has been on the cards since September last year, when the group engaged Wells Fargo and JP Morgan to advise on strategic options in regards to its business portfolio."Despite considerable expressions of interest no sale has yet been agreed. It has been concluded that it would not be in the best interests of the Group or its Platform Solutions business to extend this lengthy period of uncertainty," the statement said.It is thought BAE were looking for a price at around $1.7bn, about 9 times the unit's earnings (EBITDA) of around $190m. However potential US bidders - including infrastructure company General Electric, power management group Eaton Corporation and engineering and aerospace giant Honeywell International - are thought to have eyed a valuation below BAE's.