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Aerospace giants in talks
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July 30, 1996: 7:18 a.m. ET
McDonnell, Raytheon reportedly discuss defense and space merger
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NEW YORK (CNNfn) -- McDonnell Douglas Corp. and Raytheon Co. are reportedly considering a merger or an alliance of their giant defense and space operations.
The Wall Street Journal reported Tuesday that the two companies have entered preliminary talks to examine the merits and potential of an agreement.
Spokespeople at both companies declined to comment.
An outright merger, worth perhaps $9.9 billion at the companies' current stock prices, would create a massive defense and space company with $26 billion in annual revenue.
St. Louis-based McDonnell is the nation's largest military-aircraft maker.
Lexington, Mass.-headquartered Raytheon is one of the world's largest defense-electronics producer. Raytheon also has engineering and construction units, while also producing the "Amana" line of household appliances.
The Journal said McDonnell Chief Executive Harry Stonecipher has long wanted to acquire some of Raytheon's key holdings.
The newspaper also said McDonnell's top executives have been weighing several options for mergers and acquisitions for more than a year. 
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