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NEW YORK (CNN/Money) -
Defense contractor Titan Corp. has held talks on a possible sale to L-3 Communications Holdings, less than a year after its proposed purchase by Lockheed Martin was scuttled by a foreign-bribery investigation, according to a published report.
The Wall Street Journal reported Thursday that talks between Titan (Research) and L-3 (Research) are on again-off again. It said that Titan's cancellation of long-planned presentations to investors due to start Thursday has fueled speculation that a deal is near, although it noted that such "road show" presentations could also be scratched due to existing shareholder lawsuits or the government's ongoing investigation into individuals who may have been involved in the foreign bribery scandal at Titan.
The newspaper reported that in March Titan pleaded guilty and agreed to pay $28.5 million to settle allegations it covered up illegal payments in six countries. The more significant cost may have been the scuttling in June 2004 of a proposed $1.7 billion purchase by Lockheed Martin (Research). Titan shares plunged to $12 a share after the deal was cancelled and have only recently returned to levels they were at just before the deal was called off.
But even as speculation of a possible deal lifted shares of Titan $1.24, or 6.6 percent, to $20.03 Wednesday, the shares are still below the $22 price previously offered by Lockheed.
Titan is a major player in the fast-growing field of communications and computer services used by the Pentagon and intelligence agencies.
According to the Journal, a number of companies have approached Titan this year to discuss acquiring it. The Journal reports that Peter Cohen, the New York financier who is lead outside director of Titan, is widely seen as directing Titan's strategy. The newspaper says Cohen has told people he will consider only bids that are at least as good as Lockheed's top $22 a share offer.
For a look at the year's top corporate deals, click here.
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