GEC's American deal pleases the City

GEC’s American deal pleases the City
Richard Wilson
GEC’s ?800m US defence acquisition has been given the thumbs up by City investors. On Wednesday, the day following the purchase of Tracor, GEC’s share price jumped by four per cent as 4.5m share changed hands.
The purchase of the US defence electronics systems integration firm caught the City by surprise, but the general view seems to see the deal as a good move and taking it possibly as a signal that other deals may be in the pipeline.
The Financial Times newspaper suggested that the purchase may be a trigger for further acquisitions by the electronics group and named Northrop Grumman as a possible target for the company, if the former’s merger with Lockheed Martin was blocked.

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