Northrop Grumman Moves Ahead With Hostile Takeover

Thursday, May 24, 2001
Northrop Grumman Corp. started its exchange offer for shares of Newport News Shipbuilding Inc., moving forward with its hostile bid despite Newport's planned merger with rival General Dynamics Corp. Northrop said it would immediately enter negotiations with Newport News if the maker of nuclear-powered aircraft carriers and submarines allowed Northrop to conduct a due diligence review. A spokeswoman for Newport News said the board would review the offer and make its recommendation. A General Dynamics spokeswoman said the company had not yet reviewed Northrop's bid. Northrop's offer gives Newport shareholders the option to receive $67.50 per share in cash or shares of Northrop common stock. Northrop said it expects to issue about 16.6 million shares of its common stock to complete the transaction. That bid matches an offer from General Dynamics, which had planned to acquire Newport in a mutually negotiated $2.1 billion deal, announced in April. Newport News last week told shareholders it would stick with the General Dynamics deal while waiting for details on Northrop's proposal. Earlier, Newport had recommended that shareholders not take any action until the company's board had reviewed the bids. Northrop announced its unsolicited takeover offer for Newport on May 8, saying the merger of General Dynamics and Newport News would create a monopoly by combining the nation's two nuclear shipyards. The combination of Northrop and Newport News would give Northrop a commanding position in the market for U.S. Navy surface ships. - (Reuters)
Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Navy

US Navy CNO: Photo of the Day

Chief of Naval Operations (CNO) Adm. Jonathan Greenert receives a system update brief in the combat information center aboard the Arleigh Burke-class guided-missile

U.S. Navy Contracts 12 Rapid Response Skimmers

Kvichak Marine won a US Navy contract for 12 30-ft.Rapid Response Skimmers (RRS) for delivery over the next 18 months, with options for up to 30 additional skimmers to be delivered through 2019.

Historic Mexican Ship Visits Port of LA

ARM Cuauhtémoc, a Mexican Navy barque, also known as the Ambassador and Gentleman of the Seas, will sail into the Port of Los Angeles next week and offer free public

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Pipelines Pod Propulsion Salvage Ship Electronics Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1371 sec (7 req/sec)