Chemring CEO:ADG Deal To Be Resolved In Few Wks Or Not At All

22nd Jun 2010 08:36

By Jonathan Buck Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Chemring Group PLC's (CHG.LN) renegotiation of its $59 million acquisition of Allied Defense Group Inc. (ADG) will be resolved in "the next few weeks or it won't get resolved at all," its chief executive said Tuesday. The missile defense company was renegotiating the terms of the agreement to minimize its liability, CEO David Price told Dow Jones in an interview. Chemring Jan. 19 announced its intention to buy U.S.-based ADG, a niche manufacturer of medium- and large-caliber ammunition. The same day, ADG received a subpoena from the Department of Justice requesting it produce documents relating to its dealings with foreign governments. Since that time, the investigation has been expanded. Despite the difficulties, Price said he was confident an agreement would be reached. -By Jonathan Buck, Dow Jones Newswires; +44 (0)207 842 9237; [email protected] (END) Dow Jones Newswires June 22, 2010 03:36 ET (07:36 GMT)