Alliant Tech evaluating merger plans after Orbital rocket explosion

[Buster's Uncle]

Alliant Tech evaluating merger plans after Orbital rocket explosion
Alliant, Orbital have been partners in space business for 25 years
MarketWatch
By Angela Chen  Published: Oct 29, 2014 1:08 p.m. ET




Alliant Techsystems Inc. said it is evaluating any potential implications from Tuesday night’s explosion of Orbital Sciences Inc.’s Antares rocket, a hint their plans to merge could be in jeopardy.

Alliant Tech ATK, -6.50%  and Orbital Sciences Inc. ORB, -16.79%  disclosed plans in April to merge in a $5 billion deal and related spinoff that would create twin powerhouses supplying space services and the booming U.S. recreational shooting market.

But Alliant Tech said Wednesday that it would evaluate any potential implications from the incident, including current operating plans, long-term strategies and the proposed plans to merge.

The unmanned, cargo-carrying Antares rocket was headed to the international space station from Virginia, but suffered a critical failure almost immediately after taking off. According to National Aeronautics and Space Administration, there were no injuries, but launch facilities suffered significant damage.

Howard Rubel, an analyst at Jefferies, said the launch failure shouldn’t affect the planned deal but could knock $20 million from the company’s profits and delay a follow-on deal with the space agency.

Alliant and Orbital have been partners in the space business for 25 years. ATK is the leading U.S. manufacturer of solid rocket motors, and already supplies them to an array of Orbital military and commercial launch systems. ATK also has a range of small-satellite platforms that could mesh well with Orbital’s existing midsize satellite product line.


http://www.marketwatch.com/story/alliant-tech-evaluating-merger-plans-after-orbital-rocket-explosion-2014-10-29?siteid=yhoof2