General Dynamics Corp. dropped its unsolicited $1.4 billion bid for Newport News Shipbuilding Inc.
(NNS) after the government said it would oppose the union.
"While we find the Department of Defense's decision disappointing, we respect it and have withdrawn our offer," said Nicholas Chabraja, chairman and CEO.
General Dynamics announced the offer, which valued NNS at $38.50 a share, in February. NNS, which already had a pending agreement to buy Avondale Industries, Inc. for $470 million, asked the government to review it.
"General Dynamics believes that its proposed acquisition of NNS would have meant significant savings for the U.S. Navy, enhanced value for the shareholders of both companies, and still preserved jobs," the company said.
Wall Street had mixed reactions to the offer initially, but sentiment became increasingly negative in recent days after Senate Armed Services Committee Chairman John Warner said the proposed transaction was likely to be opposed by the government.
Semi-Submersible Under Construction
The nation's first semi-submersible 49-passneger vessel completely built in fiberglass reinforced plastics (FRP), is currently under construction at Willard Marine, Inc., of Anaheim, for Catalina Adventure Tours, Inc., of Catalina Island, Calif.
"This new addition to our fleet will be a state-of-the-art attraction for underwater viewing, including a Hollywood-type high-tech underway program on a large Plasma flat screen with surround-sound and 18,000 watts of Halogen lamps for night viewing," said Jeff Stickler, Catalina Adventure Tours president. "Also unique are the fish-feeding mechanisms, which will disperse fish food with torpedo-like action at each of the 28 large 26-in. diameter underwater windows."
The vessel measures 65 x 16.5 x 6.3 ft. with a 203,000 lbs. displacement, including 123,000 lbs. of ballast. USCG certification will be for 49 passengers, plus one operator and one crew member.
Designed by Alan Andrews Yacht Design, Long Beach, Calif., the vessel will be delivered and launched in May.