MacDonald Dettwiler Surges as Loral Deal Approved
MacDonald Dettwiler & Associates Ltd. (MDA), a Canadian maker of space-data collection equipment, rose the most in four months after a U.S. regulator approved its $875 million acquisition of Space Systems/Loral Inc. and analysts upgraded the stock.
MacDonald Dettwiler rose 11 percent to C$55.43 at 4:46 p.m. in Toronto the biggest one-day gain for the Vancouver-based company’s shares since June 27. It has risen 18 percent this year.
“The acquisition allows MDA to gain critical mass in the commercial satellite manufacturing industry and better positions the company to win U.S. defence and intelligence work,” Stephanie Price, an analyst at CIBC World Markets said in a note. Price raised her 12 to 18-month price target on MacDonald Dettwiler to C$66.
Steven Arthur, a technology analyst at RBC Capital Markets, raised his price target on the stock to C$68.
MacDonald Dettwiler said it received notice from a branch of the U.S. Federal Trade Commission that it has completed its review of the proposed transaction.
The company said in June when the deal was announced that about two-thirds of a projected C$1.9 billion ($1.9 billion) in revenue will come from commercial communications after the transaction, compared with one-third now.
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