Editor's Note
Marine business in these United States continues to get increasingly: A] Encouraging; B] Depressing; or C] Interesting, depending on who you talk to and at what time of day. The entire market, from inland to oceangoing, naval to commercial, is abuzz with activity. On the naval front, corporate intrigue has taken center stage as General Dynamics bids once again to acquire Newport News Shipbuilding. The major difference between the takeover attempt today versus the unsuccessful bid two years ago is the fact that Bill Fricks and the Newport New team is welcoming the offer, and all that remains is a thumbs up from shareholders and anti-trust concerns.
Newport News Backs $2.1 Billion Takeover From General Dynamics
Newport News Shipbuilding Inc. said Wednesday its board voted to back the $2.1 billion takeover offer from defense contractor General Dynamics Corp. over a rival bid from Northrop Grumman Corp. Newport News, maker of nuclear-powered warships, said its board voted unanimously to recommend General Dynamics' all-cash offer of $67.50 per share after determining it did not have enough information on the views of federal regulators and defense officials to take a position on the Northrop bid. Newport, based in Newport News, Va., also noted its board believes the General Dynamics' deal gives stockholders the opportunity to receive better and more certain value than they would receive under Northrop's cash and stock offer. "We will seek to determine the position of the U.S.
