AlliedSignal to Sell Sylmar Unit to L-3

AlliedSignal Inc. agreed to sell its underwater mine detectors manufacturing unit to L-3 Communications Corp. for $70 million as the company focuses on its aerospace business. The agreement calls for L-3 to acquire Sylmar-based Ocean Systems, which develops lightweight sonar and underwater warfare products. Closely held L-3 sells underwater devices to clients including U.S. government intelligence agencies and Lockheed Martin Corp. Shares of AlliedSignal, which is based in Morristown, N.J., rose 2 7/16 to 38 1/4. CIBC Oppenheimer analyst Michael Bunyaner told Barron’s that the company could earn $3 a share by 2000 and its stock could reach $52 in the next 12 months. AlliedSignal, maker of Prestone antifreeze and Fram oil filters, is expanding its aerospace division as profit in its auto products division declines. New York-based L-3 is 50% owned by a unit of Lehman Bros. Inc. and 35% is controlled by Lockheed Martin. The remaining 15% is owned by L-3 Chairman and Chief Executive Frank C. Lanza and Robert V. LaPlanta, L-3’s president and chief financial officer.