Belden Walks Out on Digi!

logo_digi#Belden $BDC announced that it has rescinded its proposal to acquire 100% of #Digi International $DGII in light of the fiscal second quarter 2017 results and full-year 2017 outlook reported by Digi on May 4, 2017.

Belden’s offer of $13.82 per share in cash, initially disclosed on November 11, 2016, was based on a 10x EBITDA multiple on #EBITDA of $24M implied by the high end of guidance provided by Digi to its shareholders on October 27, 2016.

Earnings before interest, tax, depreciation and amortization (EBITDA).

$DIGI tumbled 13% on the news to close at $10.70. Shares were trading around $10 when the buyout was announced.

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Saudi Arabia to Buy Billions of Arms during Trump Visit

bradleyThe U.S. government is working to push through contracts for tens of billions of dollars in arms sales to Saudi Arabia ahead of President #Trump’s visit to the kingdom this month, Reuters reports, citing people familiar with the matter.

The U.S. has been the key supplier for the majority of Saudi Arabia’s military needs, from #F-15 jets to command and control systems, the report says.

#Lockheed Martin $LMT programs in the package include a Terminal High Altitude Area Defense missile defense system with several batteries, which costs roughly $1B, the report says, citing sources. #BAE Systems $BAESY combat vehicles, including the Bradley Fighting Vehicle and #M109 artillery vehicle, are also under consideration as part of the Saudi package, people familiar with the talks said. Both vehicles are in the Saudi inventory. British defense company BAE has 29,000 employees in the United States.

Aug. 3 airpower summary: F-15E provides cover for disabled convoyAlso, more than $1 billion worth of munitions including armor-piercing Penetrator Warheads and Paveway laser-guided bombs made by #Raytheon Co. $RTN  are in the package, the sources said. The Obama administration suspended the planned sale because of concerns over the Saudi-led military campaign in Yemen and civilian casualties.

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Delta Air Lines Delays Airbus Orders!

#Delta Air Lines $DAL is mulling postponing delivery of 10 #Airbus $EADSY SE A350 jetliners valued at approximately $3B, even as the carrierairbus prepares for the first arrival of the new flagship aircraft, Bloomberg reports.

Although Delta will take five A350-900s this year as planned, it wants to postpone deliveries slated for 2019 and 2020 by three years, said one of the people, who asked not to be identified since the talks are private.

The move highlights the difficulty that Airbus has faced with its marquee jet in the U.S., the largest aviation market and a #Boeing $BA stronghold. #United Continental $UAL has cooled on a larger model of the twin-engine plane, and #American Airlines $AAL said that it would put arrival of its first A350 on hold a second time, to late 2020, the report added.

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