AN AUCTION for BAE Systems aerospace unit has advanced to the second round and attracted bids from heavyweights including General Electric, Eaton and Honeywell International.
The companies are among a handful of suitors that put in a second round of bids for BAE’s platform solutions business by the deadline of 29 October, after the initial round in mid-September and management presentations in following weeks.
The unit could go for more than 10 times its earnings before interest, taxes, depreciation and amortisation of about $190m (£118m), putting the price tag at the higher end of the $1.6bn to $2bn range earlier expected by bankers and analysts.
BAE, Europe’s largest defence contractor, has also received bids from several private equity firms, the sources said, underscoring robust buyer interest at a time when air traffic is picking up after a deep slump lasting years.
Smaller strategic bidders have shown interest in parts of the business; but BAE intends to sell the unit in its entirety.
BAE has hired JPMorgan Chase & Co to sell the platform solutions business.