DEFENSE BEHEMOTH NORTHROP GRUMMAN WINS FIGHT FOR SHIPBUILDING FIRM.Byline: Gregory J. Wilcox Staff Writer Newport News Newport News, independent city (1990 pop. 170,045), SE Va., on the Virginia peninsula, at the mouth of the James River, off Hampton Roads, near Norfolk; inc. 1896. Shipbuilding Inc. on Thursday agreed to a $2.6 billion makeover by Northrop Grumman Northrop Grumman Corporation (NYSE: NOC) is an aerospace and defense conglomerate that is the result of the 1994 purchase of Grumman by Northrop. The company is the third largest defense contractor for the U.S. Corp. just weeks after Northrop Grumman muscled aside rival suitor SUITOR. One who is a party to a suit or action in court. One who is a party to an action. In its ancient sense, suitor meant one Who was bound to attend the county court, also, one who formed part of the secta. (q.v.) General Dynamics General Dynamics Corporation (NYSE: GD) is a defense conglomerate formed by mergers and divestitures, and as of 2006 it is the sixth largest defense contractor in the world[1]. The company has changed markedly in the post-Cold War era of defense consolidation. Corp. The deal creates a defense sector powerhouse with 97,000 employees worldwide, the capability to build conventional and nuclear powered warships and annual sales of about $17 billion. It also demonstrates Century City-based Northrop Grumman's potent political clout in Washington. ``I would not have anticipated this at all, particularly since the Navy and the Defense Department seemed very happy with the original deal,'' analyst Paul H. Nesbit at JSA JSA - Japanese Standards Association. Research Inc. in Newport, R.I, said of Northrop Grumman's successful pursuit of Newport News. Last May, Falls Church Falls Church, independent city (1990 pop. 9,578), NE Va., a residential suburb of Washington, D.C.; inc. as a town 1875, as a city 1948. There is diverse light manufacturing, including telecommunications equipment. , Va.-based General Dynamics, a broad-based defense contractor Noun 1. defense contractor - a contractor concerned with the development and manufacture of systems of defense armed forces, armed services, military, military machine, war machine - the military forces of a nation; "their military is the largest in the region"; whose products include nuclear submarines, offered $67.50 a share, or about $2.1 billion, for Newport News. About two weeks later Northrop Grumman put a similar offer on the table but it initially was not given much chance of success because Newport News had agreed to General Dynamics' terms. But Northrop Grumman immediately took its case to Washington, meeting with a variety of government officials over the next few months. The company would not say how many meetings were held. ``We argued all along that the General Dynamics-Newport News merger would create a merger to monopoly and the Department of Justice and the Department of Defense agreed with us,'' said Northrop Grumman spokesman Frank Moore Frank Moore is a name shared by the following individuals:
Finally, in late October, the Defense Department recommended the Northrop Grumman proposal and the Justice Department said it would file suit to block the General Dynamics-Newport News combination. ``I think what happened was that Northrop put on a very strong campaign to convince the Justice Department that this was a rotten deal for the shipbuilding industry Noun 1. shipbuilding industry - an industry that builds ships industry - the people or companies engaged in a particular kind of commercial enterprise; "each industry has its own trade publications" shipbuilder - a business that builds and repairs ships . It would concentrate too much power in one company,'' Nesbit said. Northrop Grumman's success should not be a surprise. In 1994 the company won a fight for Grumman Corp., which had earlier agreed to Martin Marietta Martin Marietta Corporation was founded in 1961 through the merger of The Martin Company and American-Marietta Corporation. The combined company became a leader in aggregates, cement, chemicals, aerospace, and electronics. Corp's buyout offer. In that case, Northrop paid $62 a share, $7 per share more than the Martin Marietta bid. The deal announced Thursday, which includes Northrop Grumman assuming about $500 million of Newport News Shipbuilding debt, has been approved by the boards of directors of both companies. Minimal layoffs are expected. ``We are very pleased with our strategic acquisition of Newport News,'' Kent Kresa, Northrop Grumman chairman and chief executive officer, said in a statement. Adding Newport News, based in Norfolk, Va., to its portfolio gives Northrop Grumman a $4 billion shipbuilding enterprise that spans every class of nuclear and non-nuclear naval vessels. Eventually, Newport News will be folded into Northrop Grumman's shipbuilding sector, which also includes the Ingalls and Avondale units that came with the Litton Industries Inc. acquisition. ``This merger will enhance the future of Newport News Shipbuilding, its employees and our ability to serve our primary customer, the U.S. Navy,'' William Fricks, that company's chairman and chief executive officer, said in a statement. Thomas Schievelbein, currently Newport News executive vice president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , will become president of the Newport News operating sector. Fricks will retire once the deal has been finalized. Northrop Grumman makes a variety of defense electronics and unmanned surveillance planes and was already the nation's largest builder of non- nuclear ships for the Navy. The company also has a key role on the team that won a $200 billion contract to build the next-generation joint strike fighter. Shares of Northrop Grumman closed Thursday at $97.95. up $1.95. Newport News climbed 70 cents to close at $67.75. CAPTION(S): 2 photos Photo: (1 -- color) Virginia-based Newport News Shipbuilding Inc. has agreed to a $2.6 billion takeover offer by Northrop Grumman. Buddy Norris/Daily Press (2 -- color) Cranes fill the view at Newport News Shipbuilding's main construction site in Virginia. Sangjib Min/Daily Press |
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