DRS Technologies Inc on Thursday said it had rejected an unsolicited proposal from defence contractor L-3 Communications Holdings Inc to acquire DRS for $42 per share in cash, saying the deal was not in the best interests of its shareholders.
The Parsippany, New Jersey-based maker of equipment for US Naval combat ships last month received an unsolicited proposal from L-3, but the company's board of directors rejected the offer based on DRS' growth prospects and other factors, DRS said in a statement.
Company representatives from DRS and L-3 were not immediately available to comment on the prospects for further negotiations.
L-3, a maker of bomb-detection equipment for airports and train stations as well as secure communications systems, is one of the defence industry's most active acquirers, having purchased more than 50 companies in the past five years.