TXT - Why Shares of Textron Are Higher Today
Shares of Textron (NYSE: TXT) traded up more than 8% on Tuesday after reports surfaced that the company is in talks to acquire the business-jet division of Bombardier (OTC: BDRBF). The talks are ongoing and might not result in a deal, but it would make sense for both parties and give Textron a much-needed shot in the arm.
Shares of Textron, an industrial conglomerate that already owns the Cessna, Beechcraft, and Hawker aviation brands, have been stuck in a rut over the past year, weighed down by a lack of growth and issues spread across the portfolio. Investors increasingly have been calling for the company to make a move to jump-start growth. Combining its aviation business with the Bombardier assets would offer cost-cutting and revenue growth opportunities.
Bombardier's Global 8000 business jet. Image source: Bombardier.