* Deal to shut Laiki bank, transfer insured deposits

* Clinched hours before Monday deadline to seal EU bailout

* Without deal banks faced collapse, possible euro zone exit

By Jan Strupczewski and Annika Breidthardt

BRUSSELS, March 25 (Reuters) - Cyprus clinched a last-ditch deal with international lenders on Monday for a 10 billion euro ($13 billion) bailout that will shut down its second largest bank and inflict heavy losses on uninsured depositors, including wealthy Russians.

The agreement emerged after fraught negotiations between President Nicos Anastasiades and heads of the European Union, the European Central Bank and the International Monetary Fund - hours before a deadline to avert a collapse of the banking system.

The plan, swiftly endorsed by euro zone finance ministers, will spare the east Mediterranean island a financial meltdown by winding down Popular Bank of Cyprus, also known as Laiki, and shifting deposits below 100,000 euros to the Bank of Cyprus to create a "good bank".

Deposits above 100,000 euros, which under EU law are not guaranteed, will be frozen and used to resolve debts, and Laiki will effectively be shuttered, with thousands of job losses.

An EU spokesman said no levy would be imposed on any deposits in Cypriot banks. A first attempt at a deal last week collapsed when the Cypriot parliament rejected a proposed levy on all deposits.

A senior source involved in the talks said Anastasiades had threatened to resign at one stage if he was pushed too far.

EU diplomats said the president, flown to Brussels in a private jet chartered by the European Commission, had fought to preserve the country's business model as an offshore financial centre drawing huge sums from wealthy Russians and Britons.

The key issues in dispute were how Cyprus would raise 5.8 billion euros from its banking sector towards its own financial rescue, and how to restructure and resolve the outsized banks.

The EU's economic affairs chief Olli Rehn said there were no good options but "only hard choices left" for the latest casualty of the euro zone crisis.

With banks closed for the last week, the Central Bank of Cyprus imposed a 100-euros per day limit on withdrawals from cash machines at the two biggest banks to avert a run.

French Finance Minister Pierre Moscovici rejected charges that the EU had brought Cypriots to their knees, saying it was the island's offshore business model that had failed.

"To all those who say that we are strangling an entire people ... Cyprus is a casino economy that was on the brink of bankruptcy," he told Canal Plus television.

The euro gained against the dollar on the news in early Asian trading.

Analysts had said failure to clinch a deal could cause a financial market selloff, but some said the island's small size - it accounts for just 0.2 percent of the euro zone's economic output - meant contagion would be limited.

The abandoned levy on bank deposits had unsettled investors since it represented an unprecedented step in Europe's handling of a debt crisis that has spread from Greece, to Ireland, Portugal, Spain and Italy.

ANXIOUS MOOD

In the Cypriot capital, Nicosia, on Sunday the mood was anxious.

"I haven't felt so uncertain about the future since I was 13 and Cyprus was invaded," said Dora Giorgali, 53, a nursery teacher who lost her job two years ago when the school she worked at closed down.

"I have two children studying abroad and I tell them not to return to Cyprus. Imagine a mother saying that," she said in a central Nicosia square. "I think a solution will be found tonight but it won't be in the best interests of our country."

Cyprus's banking sector, with assets eight times the size of its economy, has been crippled by exposure to Greece, where private bondholders suffered a 75 percent "haircut" last year.

Without a deal by the end of Monday, the ECB said it would cut off emergency funds to the banks, spelling certain collapse and potentially pushing the country out of the euro.

Conservative leader Anastasiades, barely a month in office and wrestling with Cyprus' worst crisis since a 1974 invasion by Turkish forces split the island in two, was forced to back down on his efforts to shield big account holders.

Anticipating a run when banks reopen on Tuesday, parliament has given the government powers to impose capital controls.

PARLIAMENT

About 200 bank employees protested outside the presidential palace on Sunday chanting "troika out of Cyprus" and "Cyprus will not become a protectorate".

In a stunning vote on Tuesday, the 56-seat parliament rejected a levy on depositors, big and small. Finance Minister Michael Sarris then spent three fruitless days in Moscow trying to win help from Russia, whose citizens and companies have billions of euros at stake in Cypriot banks.

On Friday, lawmakers voted to nationalise pension funds and split failing lenders into good and bad banks - the measure likely to be applied to Laiki. The plan to tap pension funds was shelved due to German opposition, a Cypriot official said.

The revised bailout plan many not require further parliamentary approval since the idea of a levy was dropped.

The tottering banks hold 68 billion euros in deposits, including 38 billion in accounts of more than 100,000 euros - enormous sums for an island of 1.1 million people which could never sustain such a big financial system on its own.

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    Arm sales 2011: $11.6 billion Total sales 2011: $58.2 billion Total profit: $5.3 billion Total employment: 199,900 Sector: Aircraft, electronics, engines United Technologies makes a wide range of arms — notably military helicopters, including the Black Hawk helicopter for the U.S. Army and Seahawk helicopter for the U.S. Navy. The company was the most profitable of all companies on this list, making more than $5.3 billion in 2011. It was also the largest company on this list by headcount, employing nearly 200,000 people worldwide as of 2011. Arms comprised just 20% of the company’s $58.2 billion in sales in 2011. Other products made by United Technologies include elevators, escalators, air-conditioners and refrigerators. International sales comprised 60% of the company’s total revenue in 2012. <a href="http://247wallst.com/2013/03/06/ten-companies-profiting-most-from-war-2/#ixzz2N4THJtLU">Read more at 24/7 Wall St. </a>

  • 9. L-3 Communications

    Arm sales 2011: $12.5 billion Total sales 2011: $15.2 billion Total profit: $956 million Total employment: 61,000 Sector: Electronics Some 83% of L-3 Communications sales in 2011 came from arms sales, totaling just over $12.5 billion. This was down, however, from about $13.1 billion in arms sales in 2010. The company has four different business segments: electronic systems; aircraft modernization and maintenance; national security solutions; and command, control, communications, intelligence, surveillance and reconnaissance. Among many products manufactured, the company has become a major provider of unmanned aircraft systems. In 2011, the company turned a profit of $956 million and employed approximately 61,000 people. <a href="http://247wallst.com/2013/03/06/ten-companies-profiting-most-from-war-2/#ixzz2N4THJtLU">Read more at 24/7 Wall St. </a>

  • 8. Finmeccanica

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  • 7. EADS

    Arm sales 2011: $16.4 billion Total sales 2011: $68.3 billion Total profit: $1.4 billion Total employment: 133,120 Sector: Aircraft, electronics, missiles, space The European Aeronautic Defence and Space Company (EADS), based in the Netherlands, had $16.4 billion worth of arms sales in 2011, roughly in line with 2010. Arms sales, however, comprised just 24% of the company’ entire sales, which totaled about $68.3 billion in 2011. EADS and BAE Systems attempted to merge for $45 billion in 2012, which would have created the world’s largest aerospace company. However, the deal collapsed in October after German Chancellor Angela Merkel expressed concern that the new company would marginalize the influence of the German government and would focus decision making in France and the U.K. <a href="http://247wallst.com/2013/03/06/ten-companies-profiting-most-from-war-2/#ixzz2N4THJtLU">Read more at 24/7 Wall St. </a>

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  • 4. General Dynamics

    Arm sales 2011: $23.8 billion Total sales 2011: $32.7 billion Total profit: $2.5 billion Total employment: 95,100 Sector: Artillery, electronics, military vehicles, small arms/ammunition, ships With 18,000 transactions worth $19.5 billion in 2011, General Dynamics was the third-largest contractor to the U.S. government. Of those contracts, approximately $12.9 billion worth went to the Navy, while an additional $4.6 billion went to the Army. The company reported just under $23.8 billion in arms sales in 2011, comprising 73% of the company’s total sales. Arms sales in 2011 were slightly below 2010 levels. The company employs approximately 95,000 workers worldwide and makes a host of products, including electric boats, tracked and wheeled military vehicles, and battle tanks. The company has expressed concern about the potential effects on U.S. military budgets due to sequestration, issuing layoff notices this week. <a href="http://247wallst.com/2013/03/06/ten-companies-profiting-most-from-war-2/#ixzz2N4THJtLU">Read more at 24/7 Wall St. </a>

  • 3. BAE Systems

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  • 2. Boeing

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  • 1. Lockheed Martin

    Arm sales 2011: $36.3 billion Total sales 2011: $46.5 billion Total profit: $2.7 billion Total employment: 123,000 Sector: Aircraft, electronics, missiles, space Lockheed Martin notched $36.3 billion in sales in 2011, slightly higher than the $35.7 billion the company sold in 2010. The 2011 arms sales comprised 78% of the company’s total 2011 sales of $46.5 billion. As of 2011, the company employed 123,000 people worldwide. In the company’s aerospace and defense unit, Lockheed makes a wide range of products, including aircrafts, missiles, unmanned systems and radar systems. The company and its employees have been concerned about the effects of both the fiscal cliff and sequestration, the latter of which includes significant cuts to the U.S. Department of Defense. In the fall of 2012, the company planned on issuing layoff notices to all employees before backing down at the request of the White House. <a href="http://247wallst.com/2013/03/06/ten-companies-profiting-most-from-war-2/#ixzz2N4THJtLU">Read more at 24/7 Wall St. </a>