CACI seeks to break up General Dynamics' acquisition of CSRA -sources


(Reuters) – U.S. defense contractor CACI International Inc (CACI.N) has offered to merge with larger peer CSRA Inc (CSRA.N), seeking to disrupt the latter’s $6.8 billion acquisition by General Dynamics Corp (GD.N), people familiar with the matter said.

FILE PHOTO: A General Dynamics sign is shown at the International Association of Chiefs of Police conference in San Diego, California, U.S. October 17, 2016. REUTERS/Mike Blake/File Photo

The move comes after CSRA agreed last month to sell itself to General Dynamics, another defense contractor, for $40.75 per share in cash, as companies in the sector seek to position themselves for a pickup in government spending under U.S. President Donald Trump’s administration.

CACI’s $44 per share for CSRA offer consists of $15 per share in cash and 0.184 shares for each CSRA share, one of the sources said. Under the terms of CACI’s offer, CSRA shareholders would own 55 percent of the combined company, according to the sources.

CSRA’s board has yet to respond to CACI’s offer, although its preference remains an all-cash deal, one of the sources said.

The sources asked not to be identified because the deliberations are confidential. CACI and CSRA did not immediately respond to requests for comment.

Reporting by Mike Stone in Washtingon and Greg Roumeliotis in New York; Editing by Lisa Shumaker



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