Investment Q&A

Q: Aug 1, 2018 - CAE acquires Alpha-Omega Change Engineering (AOCE)
CAE today announced that CAE USA Mission Solutions Inc., a subsidiary of CAE USA, has acquired Alpha-Omega Change Engineering (AOCE) for approximately US$29 million, excluding post-closing adjustments. The acquisition will enhance CAE USA’s core capabilities as a training systems integrator (TSI), grow CAE’s position on enduring platforms such as fighter aircraft, and expand the ability for CAE USA to pursue higher-level security programs in the United States.

AOCE, based in Williamsburg, Virginia, provides a range of aircrew training services, operational test and evaluation, and engineering support services to the U.S. Department of Defense and U.S. intelligence services.

Would you please provide your opinion of this acquisition by CAE and what is their competition in the Defense Sector?
Thanks

Q: I hold shares in Rockwell Collins. Recently the company agreed to a friendly takeover by United Technologies . The takeover is worth $140 to COL shareholders via a combination of cash and UTX shares. There is a 7.5% collar in place. Since the deal was announced the shares in COL jumped to the $130 range and have remained there. Is the $10 discrepancy due to the collar ,or is there a good opportunity here to make $10/share on an additional purchase of COL.?