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General Dynamics Cuts Deal With Lucent

Fri., Aug. 22, 1997

General Dynamics Corp. will buy Lucent Technologies Inc.’s military products business for $300 million, the company’s fourth acquisition since September 1995.

The maker of tanks, submarines, and U.S. Navy destroyer ships said it will pay $284 million in cash. General Dynamics also will assume about $16 million in liabilities such as worker retirement benefits, Lucent spokesman Dan Coulter said.

Lucent’s military business specializes in naval electronics, making products for underwater surveillance and reducing vibrations in submarines.

“What they’re buying is a very high technology marine defense electronics shop,” said Peter Aseritis, an analyst with CS First Boston.

The unit’s capabilities will help General Dynamics’ bid to expand its shipbuilding business. The company, based in Falls Church, Virginia, wants to provide all parts of ship production, analysts said.

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