Northrop Grumman offers to buy TRW
Posted: Sat, Feb 23, 2002, 1:26 AM ET (0626 GMT)
Aerospace and defense contractor Northrop Grumman made an unsolicited bid early Friday to buy TRW in a deal worth more than $10 billion. Northrop Grumman offered to pay $47 a share for TRW, for a total of nearly $6 billion; Northrop would also assume nearly $5 billion in TRW debt. Northrop said in its offer letter to TRW that it would like to reach an agreement by March 11 so that the deal can be closed by the third quarter of the year, with little regulatory opposition expected. TRW's automotive division would be spun off or sold after the merger to allow the company to focus on aerospace and defense. TRW officials said in a response that they would consider the offer, but expressed disappointment that it came days after the resignation of its CEO, David Cote, which created an "aberrationally low" stock price. TRW's stock shot up 25 percent Friday, closing at over $50 a share, well above Northrop's offer price. Analysts speculated that Northrop made the offer to acquire TRW's expertise in space and missile defense systems, and to keep that expertise out of the hands of rival Lockheed Martin.
Aerospace and defense contractor Northrop Grumman made an unsolicited bid early Friday to buy TRW in a deal worth more than $10 billion. Northrop Grumman offered to pay $47 a share for TRW, for a total of nearly $6 billion; Northrop would also assume nearly $5 billion in TRW debt. Northrop said in its offer letter to TRW that it would like to reach an agreement by March 11 so that the deal can be closed by the third quarter of the year, with little regulatory opposition expected. TRW's automotive division would be spun off or sold after the merger to allow the company to focus on aerospace and defense. TRW officials said in a response that they would consider the offer, but expressed disappointment that it came days after the resignation of its CEO, David Cote, which created an "aberrationally low" stock price. TRW's stock shot up 25 percent Friday, closing at over $50 a share, well above Northrop's offer price. Analysts speculated that Northrop made the offer to acquire TRW's expertise in space and missile defense systems, and to keep that expertise out of the hands of rival Lockheed Martin.
Related Links:
| <<previous article | next article>> |
|
news in brief
|
|
|
|
news links
|
|
Friday, October 31
SpaceX targeting Friday for Starlink mission from Vandenberg SFB
Santa Maria (CA) Times — 7:30 am ET (1130 GMT) U.S. Launch Sites Prep for Future Growth
Aviation Week — 7:26 am ET (1126 GMT) South Korea to launch 5th spy satellite from U.S. space base Sunday
JoongAng Daily — 7:25 am ET (1125 GMT) Rocket Lab at 20: From pipe dream to $50 billion space empire
BusinessDesk — 7:25 am ET (1125 GMT) Blue Origin Completes New Glenn Static Hot Fire
Aviation Week — 7:22 am ET (1122 GMT) |
