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Northrop resurfaces
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October 5, 2001: 5:40 p.m. ET
Newport News opens Northrop talks with eye to a sweeter deal
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NEW YORK (CNNfn) - Newport News Shipbuilding Inc. said Friday it is opening discussions with Northrop Grumman Corp. that could lead to an offer to purchase Newport that is superior to a current bid by General Dynamics.
The Newport News (NNS: Research, Estimates) board said the talks could result in a superior bid from Northrop (NOC: Research, Estimates) with a value of $72.67 per share, compared with the $67.50 all-cash offer from General Dynamics.
But the builder of nuclear-powered aircraft carriers and submarines reaffirmed its recommendation of the General Dynamics (GD: Research, Estimates) offer "because there is no assurance" that a deal would be reached with Northrop.
General Dynamics has been after Newport News for the past two years and agreed to buy the company in April, but Northrop stepped in a month later, and since then the two companies have been grappling for control of the shipbuilder. 
-- from staff and wire reports
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