In the U.S., the aerospace and defense industry has not been subtle in preparing for a leaner spending era: L-3 Communications is looking to sell assets, ITT Corp. has spun off its defense activities, as did Northrop Grumman with its shipbuilding business. In Europe, the signs are much less obvious, but they are there. A trickle of small deals in France, Germany and Italy signal that companies are perusing core needs and adjusting their product portfolios accordingly. That is not to say ...

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