QinetiQ leaps on speculation over sale of US arm

21st Oct 2013 16:05

QinetiQ, the defence technology and security firm, was a high riser today on weekend reports that it is putting its US division up for sale. The former Ministry of Deference research company said back in May that it was launching a strategic review into the unit after a "decline in performance" owing to challenging market conditions. It said it was looking for the best way to "maximise its value" after the arm's revenues, profits and orders registered large falls in the year ended March 31st.The Sunday Times reported that QinetiQ sent sale documents to potential suitors last week. "Industry sources believe the sale of the American business could spark interest in the rest of Qinetiq," the paper said.The stock, with a current market capitalisation of around £1.34bn, was trading 4.59% higher at 202.8p on Monday afternoon.BC