Military systems co Ashot shares double on deal talks

The firm, whose share price is up 800% this year, is in talks with the Defense Ministry on armored combat vehicles.

Israel Military Industries Ltd. (IMI) subsidiary Ashot Ashkelon Industries Ltd. (TASE: ASHO) today announced that it is in negotiations with the Ministry of Defense on a NIS 90 million three-year contract for systems for armored combat vehicles. The contract may be expanded to NIS 260 million over five years.

Ashot develops military systems and components.

Ashot's share rose 101% by midday on the TASE to NIS 6.31 on the news. The share has risen nearly 800% since the beginning of the year and has a current market cap of NIS 63 million. IMI owns 85% of the company.

The deal follows last Sunday's announcement of a $80 million contract for jet engine shafts with a US manufacturer, whose name was not disclosed.

Published by Globes [online], Israel business news - - on February 22, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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