United Defense Industries, Inc. announced that it has entered into a definitive merger agreement with BAE Systems North America Inc., the U.S. subsidiary of BAE Systems plc.

BAE Systems will acquire all of the outstanding shares of United Defense for $75.00 per share in cash. With the assumption of United Defense’s $217.7 million of net debt (as of December 31, 2004), the value of the transaction would be approximately $4.2 billion. The closing of the transaction is subject to certain terms and conditions customary for transactions of this type, including receipt of stockholder approval and necessary regulatory approvals and is expected to be completed in the second quarter of 2005.

Sergyi Wey
11.03.2005

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