The BAE Systems stock just jumped in the opening trading session after the British defence, security and aerospace released a very cryptic message.
The group hinted in a regulatory statement that a major defence deal or possibly an acquisition could be on the horizon.
The BAE stock price is now over 2% higher on the London Stock Exchange:
Here is the full statement (emphasis ours):
“BAE Systems regularly reviews its business portfolio and operations to remain optimally aligned with key markets and to maximise value for customers and shareholders.
“The US-based manpower and services businesses of the Group’s US Intelligence and Security (I&S) sector, which span technical, mission and IT support services and predominantly serve the US government, have generated external interest and a number of enquiries. As a result, BAE Systems has engaged external advisors to support a strategic assessment of these businesses.
“This assessment does not include the technology/product-focused geospatial intelligence business of I&S, or the Group’s cyber security and intelligence business, BAE Systems Applied Intelligence.
“There can be no certainty that any transaction will occur. Any further announcement will be made as appropriate.”