The shareholder vote on the proposed US$5bn merger of Alliant Techsystems (ATK) and Orbital Sciences has been postponed to 27 January 2015 in the wake of the Antares rocket failure in late October.
Special stockholder meetings for the two companies had…
The shareholder vote on the proposed US$5bn merger of Alliant Techsystems (ATK) and Orbital Sciences has been postponed to 27 January 2015 in the wake of the Antares rocket failure in late October.
Special stockholder meetings for the two companies had been scheduled for 9 December but the dramatic explosion of the Antares vehicle shortly after lift-off on 28 October prompted management to put the meetings on hold until a review into the incident was completed.
The review not only looked at the launch failure but also Orbital’s proposed recovery plan and long-term competitive position.
Following its completion, ATK’s board stated that it continues to support the strategic merits of the tax-free transaction and recommends that ATK stockholders vote to approve the issuance of shares to Orbital stockholders.
Orbital’s board also continues to recommend that its shareholders approve the merger.
Mark DeYoung, president and chief executive officer of ATK commented: “During the course of the last two weeks, both companies have diligently evaluated and analyzed information relating to the Antares incident and Orbital’s go-forward plan.
“We believe it was responsible and essential to conduct this special due diligence and as a result of our findings, management and our board of directors continue to endorse the previously announced transaction.
“The strategy to spin off our sporting business and merge our A&D businesses with Orbital supports long-term value creation, enhances the competitive position of both our sporting and A&D businesses, and makes long-term sense for our shareholders, employees, company, and our very diverse set of customers.”
David Thompson, Orbital’s chairman, president and CEO added: “Working with NASA, our primary Antares customer, and our industrial suppliers, Orbital has implemented a comprehensive go-forward plan to fulfil the company’s commitment to the space agency’s commercial cargo programme and to upgrade the propulsion system on the Antares rocket. As previously announced, Orbital does not believe this plan will cause material adverse financial changes in 2015 or future years.”
Both the merger and the spin-off of ATK’s Sporting Group business is expected to close in February 2015, subject to customary closing conditions.
