Lichtenstein’s choice of Tucker to lead the company also suggests that the two factions could have a similar approach to running Aerojet. Both boards seem open to a future sale of the company, and “there’s not a very clear distinction thus far between what the two sides are offering” in terms of cash deployment. Meanwhile, the website created by Drake and her cohort - spotlights the national security bonafides of their proposed director slate, which would add former Air Force Secretary Deborah Lee James former Rolls-Royce North America CEO Marion Blakely Charles Bolden, a former NASA administrator and retired Marine Corps major general and Gail Baker, who formerly led Collins Aerospace’s aftermarket business.Īt this point, there’s little to differentiate Drake and Lichtenstein’s talking points, Seifman said. Under Lichtenstein’s slate, the board will also explore “returning up to $400 million in cash to shareholders via share and convertible debt repurchases.” If and when a deal were to be reached, we would also take steps to secure a break fee and other terms to protect shareholders’ interests,” states, a website run by Lichtenstein and his allies. “Our slate would take steps to ensure the Company is properly shopped. For Lichtenstein’s slate, that vision includes assessing whether there are other buyers who could seek to acquire Aerojet. In the hopes of enticing shareholders into voting for its favored director slate, each faction has created a website detailing its vision for the future of the company. “Investors have been more focused on the fundamentals of the business, the strategic opportunities and the capital deployment” rather than the conflict between Drake and Lichtenstein, Seifman said. So now, the big question for shareholders is: What does the future look like for Aerojet once the proxy battle is resolved? However, supporters of the Lockheed merger have argued that without a major corporate parent, Aerojet could be vulnerable to market headwinds that can be more easily absorbed by the former Orbit al, a competitor now rebranded as a subsection of Northrop.Īerojet’s advanced manufacturing facility in Huntsville, Ala. Orbital ATK - Aerojet’s primary competitor in the solid rocket motor market - was acquired by Northrop Grumman in 2018.Ī major concern that led to the FTC filing suit to prevent Lockheed’s acquisition of Aerojet was the prospect of reduced competition, as other defense primes could be forced to partner with a direct competitor in order to source components for key weapon systems. However, if either side can provide evidence that one party is better fit to lead the company, “perhaps there’s some kind of opportunity … to influence shareholders one way or another.”Īlthough its annual revenues pale in comparison to major primes like Lockheed and Raytheon, Aerojet has an outsize importance in the defense industry as the sole independent supplier of solid rocket motors and other technologies needed for missiles, rockets and hypersonic weapons. “In terms of their vision for Aerojet, it’s not clear what the difference is between the two sides,” he said. It’s too early to tell whether the court proceedings will impact the shareholder vote, said Seth Seifman, an aerospace and defense analyst at J.P. In contrast, Lichtenstein has pushed for the company’s annual meeting to take place in mid-July, which he stated will allow shareholders to make “fully informed decisions” based on information revealed during the court proceedings. That means the most important battle for the future of Aerojet Rocketdyne could occur outside of the courtroom, as Drake and Lichtenstein fight for the favor of Aerojet shareholders who will ultimately decide the fate of the company.ĭrake hopes to rally shareholders to agree to special meeting for June 21, which would allow stockholders to end the proxy war by electing either the Drake or Lichtenstein-led slates. Each group has proposed its own slate of directors, with Lichtenstein announcing on May 18 his intent to replace Drake with Mark Tucker, who served as Aerojet’s chief operating officer from 2015 to 2020. A request for comment by Breaking Defense was not returned by press time.Ĭurrently, the Aerojet Rocketdyne board is deadlocked, with its eight members divided between Drake and Lichtenstein. Drake has used in her attempt to gain control of the Company,” Lichtenstein said in the statement.ĭrake has not made a public statement about the ongoing court proceedings. “Shareholders will finally be able to learn material details about these misdeeds and see the desperate measures Ms.
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