Northrop extends its bid for TRW

Shareholders given until April 12 in hostile tender offer

April 01, 2002|By BLOOMBERG NEWS

LOS ANGELES - Northrop Grumman Corp., the fourth-largest U.S. defense contractor, has extended its $11.4 billion hostile bid for rival TRW Inc. after a deadline passed without enough shares tendered to complete the transaction.

Northrop extended the tender-offer deadline until midnight on April 12, according to a statement. Cleveland-based TRW, the eighth-biggest U.S. defense contractor, is holding a shareholders meeting April 22 to vote on the offer.

Northrop, the world's largest builder of military ships, would become the largest U.S. military contractor should it acquire TRW, according to some analysts. TRW makes sensors and electronics used on satellites and is a major subcontractor on the U.S. missile defense program.

TRW's board has advised investors not to tender their shares, saying the offer of $47 a share is too low. Northrop wants TRW shareholders to force their board to disclose nonpublic information and to give investors more say on the bid.

Northrop said in its statement that 2.11 million TRW common shares have been tendered. TRW has 126.37 million shares outstanding, according to Bloomberg data.

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