L-3 Communications bought Titan Corp today for 2 billion expanding it's defense-intelligence company.
L-3 earnings will increase 5% per share and Titan will increase 1.4% per share.
All of this despite both companies having been in legal trouble.
- In March, Titan pleaded guilty to making illegal payments to officials in Benin and paid $28.5 million to the federal government to settle the matter.
- Titan, which provides translators and interrogators used by the U.S. Army in Iraq, has also come into the spotlight for work at Iraq's Abu Ghraib prison, which became notorious for abuse of prisoners.
- L-3 is also the subject of a federal investigation after one of its units supplied defective parts for emergency radios to locate downed military pilots.
With over a dozen deals since 1997, L-3 is one of the leading defense contractors today. But who has heard of them? Yeah everyone knows of Haliburton but L-3? These companies and their legal travails need to become known as well as Haliburton. In fact holding stock in such companies needs to become a source of shame and ridicule. Maybe then we will see a light at the end of the Iraq war tunnel and keep our troops out of Iran.