Textron Possible Target For Activists

Textron Inc TXT shares are higher today, up nearly 1% as Reuters is reporting that the company could be a prime target for activist investors looking to extract value in the aerospace and defense sector. The thought process here is that Textron, which is a $6.2 billion diversified conglomerate, could benefit from a break up of its subsidiaries. The company makes everything from Bell helicopters and Cessna aircraft to automotive parts and golf carts. It also has a financing arm which finances sales of the company's products. According to one activist investor, "There is no one in the activist space who hasn't looked at it and licked their lips. It falls under the rubric of what the activists do a lot -- which is the diversified conglomerate doesn't get a fair multiple unless it is a mega cap." Textron did not respond to requests for a comment from Reuters. At last check, shares of Textron were up 36 cents to $22.80, a gain of 1.4%.