Carlyle to Buy Armored-Vehicle Partnership

Chicago-based FMC Corp. and Harsco Corp. of Camp Hill, Pa., will sell their military armored-vehicle partnership to Carlyle Group for $850 million, rejecting a higher bid by General Dynamics Corp. that faced opposition on antitrust grounds. Two weeks ago, Falls Church, Va.-based General Dynamics bid $1 billion for the partnership, United Defense, its only U.S. rival in armored military vehicles, sources familiar with the negotiations said. Two members of Congress requested an antitrust review of that offer before an agreement was even reached. “FMC didn’t want to go through the review process. They were willing to leave the money on the table and go with the sure thing,” said Peter Aseritis, an analyst with CS First Boston. Washington-based Carlyle, an investment bank whose management includes former Secretary of Defense Frank Carlucci and ex-Secretary of State James A. Baker III, doesn’t own an armored-vehicle business and its purchase won’t be rejected by regulators, analysts said. FMC’s stock fell 94 cents to close at $82.50; Harsco’s stock fell 25 cents to close at $44.88; General Dynamics fell 44 cents to close at $83.13. All three trade on the New York Stock Exchange.