|
Northrop in for Newport?
|
 |
May 8, 2001: 7:23 p.m. ET
Northrop Grumman reportedly matches General Dynamics bid for Newport News
|
NEW YORK (CNNfn) - Defense contractor Northrop Grumman submitted a $2.1 billion bid for Newport News Shipbuilding late Tuesday that matches an earlier offer made by rival General Dynamics.
Northrop (NOC: Research, Estimates) offered to buy the company for $67.50 per share, in a 25 percent cash and 75 percent stock deal. General Dynamics, the nation's fourth largest defense contractor, had agreed to pay the same price in an all-cash bid last month.
Newport, based in Newport News, Va., designs and builds nuclear-powered aircraft carriers and submarines for the U.S. Navy.
Officials at Newport (NNS: Research, Estimates) could not immediately be reached for comment.
In a statement, General Dynamics said it is "disappointed that Northrop Grumman has chosen to interfere in a proposed transaction agreed upon by the respective boards of directors of General Dynamics and Newport News Shipbuilding."
Falls Church, Va.-based General Dynamics said its deal with Newport is "the only combination that can provide synergies necessary to achieve significant merger-related savings."
The companies agreed to the acquisition, which includes a $50 million breakup fee, in late April.
A deal with Newport and either General Dynamics (GD: Research, Estimates) or Northrop would create a shipping powerhouse in the defense industry.
General Dynamics made an unsuccessful attempt to acquire Newport through an unsolicited bid of $38.50 a share in February 1999. That deal was blocked by Pentagon officials who worried it would create a monopoly in the market for nuclear shipbuilding.
Shares of Northrop fell 55 cents to $91.50 on the New York Stock Exchange Tuesday, while General Dynamics rose 30 cents to $78.30. Newport News fell a penny to $65.
-- from staff and wire reports 
|
|
|
|
|
 |
|
