L-3 Communications Corporation (NYSE: LLL) is a company that supplies prime contractors with Intelligence, Surveillance and Reconnaissance (ISR) systems and products, secure communications systems and products, avionics and ocean products, training devices and services, microwave components and telemetry, instrumentation, space and navigation products.

Its customers include the Department of Defense, Department of Homeland Security, selected U.S. Government intelligence agencies, aerospace prime contractors and commercial telecommunications and wireless customers.

L-3 Communications was started in 1997 with the purchase of business units that were sold off in the 1996 merger between Loral Corp. and Lockheed Martin and is headquartered in New York City, New York.

In a prospective look at aviation in 2006 The World in 2006, an annual publication by The Economist, predicts that the UK-based defense contractor BAE Systems is likely to pursue further major defense acquisitions in the United States in 2006. The magazine describes L-3 as an "obvious candidate". ^[1] BAE is the world's fourth largest defense contractor by revenue and has grown its U.S. based subsidiary, BAE Systems Inc, dramatically in recent years. The most significant recent acquisition being the $3.974 billion (£2.1 billion) purchase of United Defense in 2005. However, shortly after rumors surfaced of an impending purchase of L-3 by BAE Systems, BAE issued a statement denying any intentions of purchasing L-3.

On June 7th, 2006, the L-3 CEO Frank Lanza died suddenly. This sent L-3's stock to about a $4 rise due to speculation that the company may be bought out by its business rivals. Possible buyout candidates are Lockheed Martin, Northrop Grumman, and other similar firms having stake in the defense industry. Many also speculate that the BAE Systems Inc will very likely have a renewed interest in buying out the mid-level defense firm in the rise of this event.