> Defense contractor Harris Corp. decided to remain independent after
> considering acquisition offers that were below what the company's
> board believes to be its value.

> In an interview Sunday, Harris Chairman and Chief Executive Howard
> Lance said, "We want to make it very clear that Harris is not pursuing
> a sale of the company." The company plans to issue a statement Monday.

> Last month, The Wall Street Journal reported that the company was
> exploring strategic options, including a sale. Harris, of Melbourne,
> Fla., is a supplier of advanced military and intelligence technologies
> and is also involved in the television and telecom markets.

> The 113-year-old company last week received bids below the board's
> benchmark of $75 to $80 a share, according to people familiar with the
> matter. The company's stock was at $65.78 at 4 p.m. Friday on the New
> York Stock Exchange composite trading.

> Mr. Lance acknowledged that Harris has considered overtures from
> potential suitors, but he declined to provide details.

> "We decided to issue this press statement because the level of rumor
> and media reports had escalated to a point where it is causing
> significant disruptions, and that could negatively impact our
> shareholders and performance," Mr. Lance said.

> At the same time, he said that the company was "not throwing up a
> brick wall" against future suitors.

> The defense industry had been watching Harris's possible acquisition
> after Italy's Finmeccanica SA agreed to buy DRS Technologies Inc. in a
> transaction valued at $5.2 billion including the assumption of debt.

> The deal came at a time when analysts are beginning to question
> whether Pentagon spending will decline after the presidential election
> and a likely drawdown of forces in Iraq. Such a prospect could lead to
> another round of consolidation as defense companies attempt to bolster
> their bottom lines by acquiring niche companies such as Harris.

> Harris's annual profit has risen more than sevenfold since 2003, and
> it stock has more than quadrupled in price over the past five years.

> "Clearly, we felt that the market was discounting our past performance
> on the basis of its concern for the future," Mr. Lance said.

> Write to August Cole at august.c...@dowjones.com