Today, we learned that "the U.S. Army said on Monday it was canceling the $39 billion Comanche helicopter program being developed by Boeing Co. and United Technologies Corp., saying it had become obsolete and the money could be better spent on other aircraft." This alone might actually be a good thing. Who needs another multi-billion dollar arms program when the equipment you have can easily do the job with upgrades. What makes this case different is once again The Carlyle groups which owns the majority stake in United Technologies filed to sell a huge amount of shares before the announcement of the cancellation. "Defense contractor United Defense Industries Inc. filed a registration on Friday for the possible sale of up to 12 million shares of its common stock, which it said are held by investment firm The Carlyle Group and other stockholders. Carlyle bought Arlington, Virginia-based United Defense in 1997, and in July the company said it expected Carlyle would sell about half of its remaining stake"... Can there be little doubt that Carlyle has friends in high places. A similar scenario ensued with the canellation of the Crusader artillery project: "When they bought the company, there was a gun program that was the future of United Defense. It was a gun called the Crusader. It was essentially a next-generation Paladin gun system -- a very large, mobile Howitzer... No one could believe that this gun had survived as long as it did. And then finally after Sept. 11, when all ships were sort of, you know, rising on the tide of defense spending, they were able to take United Defense public, make hundreds of millions of dollars off of that IPO, only to then finally have the Crusader program cancelled in a very public fashion by Donald Rumsfeld in an announcement. But of course, behind the scenes, what the public didn't see was that United Defense was awarded a brand-new contract for a brand-new gun that very same day that the Crusader program was cancelled... BUZZFLASH: So they were essentially held harmless. BRIODY: Yes, exactly"... It is time to put pressure on the SEC for a full investigation of The Carlyle Group for insider trading....
http://www.thesyndrome.com/archives/00000567.htm