FOES UP BIDS FOR HUGHES UNIT.Byline: Joann Muller The Boston Globe Raytheon Co. and rival 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. both increased their bids for General Motors Corp.'s Hughes defense unit to about $10 billion Thursday, and GM's board of directors is expected to hold a special meeting today to weigh the offers, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. individuals close to the bidding. But as the intense bidding war appeared to be coming to a close, some Wall Street analysts said the ultimate price may be too high. Both companies added about $1 billion to their final bids, which were submitted late Wednesday. Although Northrop Grumman's previous $9.2 billion bid was slightly higher than Raytheon's $9 billion offer, GM is said also to be concerned with which company's stock is a better investment, since GM will be paid, at least partially, in stock of the buyer. Northrop Grumman's stock price is about $30 more than Raytheon's, but Raytheon stock could be worth much more if the company is broken up, analysts believe. Also, Raytheon, with its recent plans to buy Texas Instruments See TI. (company) Texas Instruments - (TI) A US electronics company. A TI engineer, Jack Kilby invented the integrated circuit in 1958. Three TI employees left the company in 1982 to start Compaq. Inc.'s $1.8 billion defense unit, may have the best long-term prospects in the defense industry, they said. Both Raytheon, based in Lexington, Mass., and Northrop Grumman are eager to win the battle for Hughes and solidify so·lid·i·fy v. so·lid·i·fied, so·lid·i·fy·ing, so·lid·i·fies v.tr. 1. To make solid, compact, or hard. 2. To make strong or united. v.intr. their position as a survivor in the swiftly consolidating defense industry. But they are trying to balance that desire with a fear of paying too much for the $6 billion maker of Tomahawk tomahawk [from an Algonquian dialect of Virginia], hatchet generally used by Native North Americans as a hand weapon and as a missile. The earliest tomahawks were made of stone, with one edge or two edges sharpened (sometimes the stone was globe shaped). cruise missiles cruise missile, low-flying, continuously powered offensive missile designed to evade defense systems. Although the German V-1 (1944) was a simple cruise missile, the cruise missile did not realize its potential until the 1970s, when the United States sought to and other defense electronics. |
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