Reuters first with key details of L-1 defense deal

Reuters scooped competitors on news that European defense contractor BAE Systems was close to buying the government consulting business of U.S. security firm L-1 Identity Solutions for about $300 million. Reuters exclusively reported on Sept 19 that the deal between BAE Systems and L-1 would allow the rest of the U.S. company to be sold to French defense conglomerate Safran for some $1 billion. Safran, L-1 and BAE Systems announced the deals a day after the Reuters exclusive. L-1 shares surged 20 percent and shares of Safran jumped 5 percent. The Reuters story prompted calls from shareholders of L-1 and bankers looking for more details. The Wall Street Journal and Bloomberg did not have the details until after the companies announced the news. The deal was the biggest defense auction of the year, one of a number of auctions in the aerospace and defense industry as companies readjust their portfolios in the face of shrinking defense spending globally.