““CEOs go to their vacation homes just after companies report favorable news, and CEOs return to headquarters right before subsequent news is released. More good news is released when CEOs are back at work, and CEOs appear not to leave headquarters at all if a firm has adverse news to disclose. When CEOs are away from the office, stock prices behave quietly with sharply lower volatility. Volatility increases immediately when CEOs return to work.” —David Yermack, a New York University finance professor, whose recently released study shows a correlation between when CEOs take their private jets on vacation and movements in their companies’ stock price ”
Raytheon Aircraft Sold, but a Hawker Is Still a Hawker
Raytheon Company last month announced a $3.3 billion "definitive agreement" that will result in the sale of Raytheon Aircraft to Onex Partners of Toronto and GS Capital Partners, an affiliate of New York-based Goldman Sachs. The acquisition will operate as Hawker Beechcraft Corp., and the deal includes Raytheon Aircraft assets in Wichita and Salina, Kan.; Little Rock, Ark.; and Dallas, as well as its FBOs and service center network in Mexico, the U.S. and the UK. Not included in the sale is Raytheon's Flight Options fractional-ownership program and Raytheon Airline Aviation Services, which supports the fleet of Beech airliners no longer in production. The sale is expected to close within six months.