The Federal Trade Commission said Tuesday it approved General Dynamics Corp.'s plan to divest its stake in a military ammunition company, a sale the government required before the defense contractor could buy a Canadian ammunition firm.
The FTC said in December that it would require Falls Church, Va.-based General Dynamics to sell its 50 percent stake in Kansas-based American Ordnance LLC before it could proceed with its $275 million acquisition of Canadian ammunition supplier SNC Technologies Inc.
The company in January agreed to do so.
General Dynamics plans to sell its share of American Ordnance to Philadelphia-based government outsourcing contractor Day & Zimmerman Inc., which owns the other half of American Ordnance.
Shares of General Dynamics fell $2.24, or 2.9 percent, to $75.85 in midday trading on the New York Stock Exchange. The stock has ranged from $61.20 to $81.28 over the past year.
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WASHINGTON
Wednesday, February 28, 2007
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