Leidos Holdings Inc (LDOS.N) and Engility Holdings Inc (EGL.N), which were also considering offers, feel discouraged by the prospects of the assets for sale following meetings with Lockheed, the people said this week. To be sure, Lockheed may decide to spin off the government IT business rather than sell it outright, the people said. Lockheed, Leidos and Engility declined to comment, while CACI did not respond to a request for comment.