Que pasa?



Is the Spartan thing a good reason for the slide from £22 to £15 in recent times?
What did the shorters know?
Where will it end?
Yours Disturbed


Equally baffled - I saw the news update this morning and assumed it was just a normal part of the process for the take-over, making it news which was pretty much price movement neutral.


Just noticed there has also been a broker downgrade: Berenberg changed from hold to sell, but surely markets don’t take THAT much notice of brokers.


(Reuters) - British defence contractor Ultra Electronics (ULE.L) said it expected a delayed decision from the U.S. Department of Justice (DoJ) on its $234 million (178.08 million pounds) purchase of Sparton Corp (SPA.N).

Ultra Electronics, whose shares fell 7.9 percent to 1577 pence at 0840 GMT and were the worst performers on the FTSE Midcap Index (.FTMC), said on Friday that it had agreed with the DoJ on time targets for further document submission and time limits for the DoJ’s discovery and decision-making.

Assuming that Ultra Electronics and the DoJ meet a Nov. 30 target, a decision from the DoJ is now expected at the end of March next year, the British firm said.

Ultra Electronics said in July that it would buy Sparton Corp, which makes anti-submarine warfare devices used by the U.S. Navy, creating a major supplier in underwater warfare, including to the U.S. Department of Defense.

However, the British firm said in September that the DoJ had asked for additional information under the Hart-Scott-Rodino Antitrust Improvements Act.

Liberum analysts, who rate Ultra Electronics shares as a “buy”, said further delays were possible, while analysts at Berenberg downgraded the stock to a “sell” from “hold”, citing “persistent organic decline”.

Berenberg analysts also pointed to budgetary pressure in the British defence market, which accounts for about 15 percent of the group’s revenue and forecast Ultra Electronics would miss its full-year targets.

U.S. President Donald Trump has sought what he called a “historic” increase in defence spending and has criticised European nations for low defence spending.


This seems very harsh treatment for the delaying of a deal, which hardly set the share price sky rocketing when it was announced.


This may explain it (from ADVFN discussion board)

I guess Monday could be difficult.

Yours In The Headlights


Douglas Caster back in charge is good news in a difficult time.