L-3 Open To Taking Part In Air Force Tanker Proposals -Reuters

The chief executive of L-3 Communications Holdings Inc. (LLL) said the company wouldn't' rule out taking part in proposals to build aerial tankers for the U.S. Air Force, Reuters reports Thursday.

L-3 had decided not to partner with European Aeronautic Defense & Space Co., or EADS, (EAD.FR) on a proposal.

"The door is still open if EADS wants to talk in the future, or Boeing for that matter," Michael Strianese said.

Boeing Co. (BA) and EADS are in a bidding war for a contract to build 179 tankers for a price of up to $50 billion.

Strianese denied that his New York-based company's decision to back out of an EADS partnership had anything to do with political pressure.

"The conditions for coming together were not there at this time," the CEO said at the Reuters Aerospace and Defense Summit in Washington, D.C. Still, he said, "I never like to say the door is closed to any prospective work."

Additionally, Strianese said L-3 could spend up to $1 billion for acquisitions, according to Reuters.

"We are always in discussions with some companies," he said. "We are more in acquisition mode than divestiture mode."

Links to stories: http://www.reuters.com/article/idUSTRE68846X20100909

http://www.reuters.com/article/idUSTRE6883ZM20100909

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