Three Reviews Likely for Italy's Biggest Arms Dealer

Italy's biggest arms maker Finmeccanica SpA's $5.2 billion acquisition of DRS Technologies Inc. will require at least three separate reviews by U.S. government agencies -- and it better not forget to file notice with all three.

In addition to a review by the interagency Committee on Foreign Investment in the U.S. and an examination by the Defense Department's Defense Security Service, Finmeccanica will also make sure it files a notice with the State Department's Directorate of Defense Trade Controls.

The DDTC is required to conduct a 60-day review of the transaction. DDTC has jurisdiction to review the transaction because DRS manufactures products that are on the U.S. export control list of munitions and technology.

But Finmeccanica got into a little hot water not too long ago with the DDTC as part of its 2005 acquisition of BAE System Avionics Ltd. Finmeccanica renamed the division Selex Sensors and Airborne Systems Ltd., which is based in Overland Park, Kan.

However, it seems someone didn't submit a form with the DDTC. According to a notice posted on the DDTC's Web site: "BAE understands that this authorization should have been obtained to address those Department of State licenses and agreements (active and expired) to which BAE Systems Avionics was a party." - Ron Orol