Financial Mines

News and notes from the business reporters for the Connecticut Media Group.

Archive for February 19th, 2013

SEC, FBI shake the ketchup bottle deal for inside traders

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A Heinz Ketchup bottle from Getty Images.

The SEC and FBI are shaking the ketchup bottle and investigating alleged insider trading ahead of Berkshire Hathaway’s acquisition of Heinz.

Berkshire and 3G Capital said on Feb. 14 they would buy Heinz for $72.50 a share, representing a 20 percent premium from the closing price on the 13th.

In its complaint, the SEC says either foreign traders, or U.S. ones trading through foreign accounts, realized a $1.7 million gain in Heinz options ahead of the announcement. The SEC says one of the accounts used had no record of ever trading Heinz options. An account in Zurich has been frozen.

http://www.sec.gov/litigation/complaints/2013/comp-pr2013-24.pdf

Sikorsky Aerospace taps Texas firm for State Department contract

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Sikorsky Aerospace Services, the Shelton-based aftermarket service arm of Sikorsky Aircraft, has picked Texas-based S-TEC/ Cobhman Commercial systems to do the advanced avionics work on the S-61 modernization program for the State Department.

Sikorsky, a subsidiary of Hartford-based United Technologies, won a contract to provide up to 110 S-61s to the State Department in 2010. The re-worked helicopters will be used to transport passengers and cargo worldwide.

“Sikorsky’s S-61 helicopter has a 50-year legacy of reliably performing missions for the U.S. and foreign allied militaries. With its rugged endurance, spaciousness, and lift capabilities, the modernized S-61 aircraft can be outfitted to meet a wide variety of requirements. It provides superior value for a mid-size multi-mission helicopter,” said John Johnson, Director, Commercial Customer Support and S-61 Programs. “We are pleased to work with Cobham, which has a solid reputation for innovation and system performance in harsh conditions.”

Decommissioned legacy S-61 aircraft are being converted into a modernized S-61T fleet that incorporate a full array of system upgrades for enhanced mission performance. The IDIQ serves as a contracting vehicle for any U.S. Government agency to purchase the modernized S-61T variant. The integrated avionics package features large-format synthetic vision flight displays, advanced flight management capability, integrated Engine Indication and Crew Alerting System (EICAS), dual digital audio/radio control display units, dual VHF navigation, and communication radios.

“Cobham Commercial Systems is excited to be part of Sikorsky’s modernization of the S-61 helicopter” said Roger J. Smith, General Manager, Cobham Commercial Systems, Mineral Wells. “We are proud to have been selected to enhance the mission performance of Sikorsky’s S-61T aircraft with Cobham’s intuitive 21st century cockpit.”