Textron Trading Higher on Reports of Strategic Review

The shares of Textron Inc.TXT are trading higher pre-market after the Reuters report suggesting that the company is exploring strategic options that could include spinning off parts of the aerospace and defense conglomerate. According to the report, Textron has not formally hired any bankers. The company is engaged in aircraft, defense, industrial and finance businesses and currently trades 19 its trailing 12 month earnings. The Reuters article points out that Textron's private jet has been struggling due to the weakness in the global economy and also faces a threat of shrinking military budgets. The hopes of strategic changes have sent Textron shares to 21.87, which is a gain of $1.70 or 8.43% on the session.