Textron wins $641 million deal to build Saudi cluster bombs
WASHINGTON (Reuters) - Textron Defense Systems, a unit of Textron Inc (TXT.N), has won a U.S. Air Force contract valued at $641 million to build 1,300 cluster bombs for Saudi Arabia, the U.S. Defense Department and Textron said on Tuesday.
The contract, which runs through the end of 2015, formalizes the sale of Textron's CBU-105 cluster bombers to Saudi Arabia, a deal that was first notified to Congress in December 2010.
The Pentagon's daily digest of major arms sales said $410 million in foreign military sales funds were being obligated for the Saudi work at this time.
Textron said the CBU-105, also known as a Sensor Fuzed Weapon, meets the Pentagon's policy on cluster munitions, which requires that they must not result in more than 1 percent unexploded ordnance, or duds.
Company spokesman Stephen Greene said the Sensor Fuzed Weapon has a greater than 99.6 percent reliability rate, which means that it may yield a dud less than 0.5 percent of the time. He said the U.S. Air Force had also verified that if a dud were to reach the ground, it would be inert and safe to handle in under two minutes.
The Air Force had no immediate comment on details of the contract announcement.
BOSTON - Hedge fund manager William Ackman, who is betting $1.16 billion that Herbalife is a fraud, spent $264,000 last year on lobbyists to press his case against the company, according to government documents filed in recent weeks.
- U.S. small businesses borrowed more money in January than they did a year earlier, signaling continued growth in the economy despite a spate of cold weather that has been blamed for weakness in many other indicators of activity.
BEIJING/HONG KONG - China reiterated its opposition on Thursday to a European Union plan to limit airline carbon dioxide emissions and called for talks to resolve the issue a day after its major airlines refused to pay any carbon costs under the new law.