Boeing not ruling out merger with rival and Lockheed looks for acquisitions

Speaking at the Reuters Aerospace and Defense Summit in Washington, Dennis Muilenburg said Boeing continues to look at high-growth areas such as cybersecurity, intelligence and surveillance and unmanned systems for potential deals and will make targeted acquisitions in those areas.

"We continue to see acquisitions as an opportunity area for us. It's one of the tools that we use to grow," said Muilenburg, chief executive of Boeing's defense, space and security division.

Asked if Boeing would consider a large-scale merger with a major defense contractor, Muilenburg said: "I'm not going to rule out or rule in any options."

"Obviously as we see defense budget pressure, that does at times lead to potential consolidation," he said.

Meanwhile at the same event, Lockheed Martin said it expects more defense assets to come up for sale in the face of budget pressures and a changing security environment,

Chief Executive Officer Robert Stevens said Lockheed Martin has the cash needed to make acquisitions in areas of interest such as cybersecurity, but the company would be "selective" in bidding for assets.