The proposed deal to merge ATK’s defense contracting business with Orbital Sciences in a $5 billion deal and then spin-off the Savage Arms and Bushnell businesses to shareholders will certainly be scrutinized following the explosion last week of an Orbital Sciences rocket shortly after launch in Virginia. Another factor that will complicate matters is the present inventory glut and demand hangover that is affecting the entire firearms industry.

The proposed transaction would have created a $2.2 billion sporting goods company and a $4.5 billion aerospace and defense contractor. It was announced in April. A registration statement ... Log in to view full article.