L-3 May Sell Some Assets, But Won't Seek Breakup -Reuters

Defense contractor L-3 Communications Holdings Inc. (LLL) will likely divest some cheaper assets in services but has no plans for a breakup or broad portfolio overhaul, Reuters reported Wednesday, citing people familiar with the situation.

New York-based L-3, which is being pushed by activist shareholder Relational Investors LLC to break itself up, is considering spinning off or selling a part of its government-services division that it views as nonstrategic, the sources said.

Those assets could together attract a sale price of about $1 billion -- about a quarter of the division's $4 billion sales in 2010, the people said.

Relational, whose 6% stake makes it the biggest single shareholder in L-3, wants the company to sell or spin off its government services as well as aircraft modernization and maintenance operations, Reuters cited a person close to the investor as saying previously.

Representatives for L-3 declined to comment to Reuters. Relational wasn't immediately available to comment.

Full story at http://www.reuters.com/article/2011/07/13/l-3-activist-idUSN1E76C0RF20110713

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