LOCKHEED, NORTHROP GET TIME TO SAVE DEAL.Byline: Michael J. Sniffen Associated Press Associated Press: see news agency. Associated Press (AP) Cooperative news agency, the oldest and largest in the U.S. and long the largest in the world. The government gave Lockheed Martin For the former company, see . Lockheed Martin (NYSE: LMT) is a leading multinational aerospace manufacturer and advanced technology company formed in 1995 by the merger of Lockheed Corporation with Martin Marietta. Corp. and 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. until Monday to overcome objections to their $8.3 billion merger or face a federal lawsuit to block the deal. ``We have given everybody concerned some more time to try to address the issues,'' Attorney General Janet Reno Janet Reno (born July 21, 1938) was the first and to date only female Attorney General of the United States (1993–2001). She was nominated by President Bill Clinton on February 11, 1993, and confirmed on March 11. said at her weekly news conference Thursday. ``And I expect that this will happen within the next several days.'' Reno would not predict whether the extra time would produce agreement on divestitures that would satisfy the government's objections. But asked if the government would sue if the matter is not worked out within the new time frame, Reno replied: ``That's correct.'' Lockheed said in a statement that the Justice Department had given it until Monday to respond to the government's demand for divestitures of key defense businesses, including the production of radar systems and electronic countermeasures Noun 1. electronic countermeasures - electronic warfare undertaken to prevent or reduce an enemy's effective use of the electromagnetic spectrum ECM , which enable pilots to evade incoming missiles. Lockheed said it also was prepared to go to court but would continue to negotiate. Earlier, Lockheed had said it had ``outlined new initiatives'' to address government objections. An offer by the companies to divest To deprive or take away. Divest is usually used in reference to the relinquishment of authority, power, property, or title. If, for example, an individual is disinherited, he or she is divested of the right to inherit money. businesses with as much as $1 billion in sales was rejected by federal officials reviewing the merger, The Wall Street Journal reported Wednesday. Defense and Justice department officials told the defense companies they need to sell businesses with annual sales approaching $4 billion before the merger can be approved, sources told the paper. The most recent offer of divestitures was double the size of the companies' first proposal. Government officials said their current position is consistent with their past stance. Lockheed already is the biggest 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"; , with about 25 percent of the Pentagon budget. The merger would give it a near lock on the supply of radar and countermeasures That form of military science that, by the employment of devices and/or techniques, has as its objective the impairment of the operational effectiveness of enemy activity. See also electronic warfare. , and also would allow it to dominate production of the F-22 stealth fighter under development, said Stuart McCutchen, publisher of the newsletter Defense Mergers & Acquisitions. Even with major divestitures, Northrop would be an attractive partner for Lockheed because of its defense information business and commercial aircraft operations. Northrop is the largest supplier for the Boeing Co., McCutchen said. ``They have identified the commercial aircraft business as one they want to grow in. That's a priority,'' he said. ``They will become a leading player if they pick up Northrop Grumman's business.'' Officials of Northrop Grumman had no comment. CAPTION(S): Photo PHOTO (Ran in Business only) Janet Reno Threatens lawsuit |
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