Printer Friendly
The Free Library
14,558,602 articles and books
Member login
User name  
Password 
 
Join us Forgot password?

LOCKHEED MERGER OPPOSED BY ITS BIGGEST CUSTOMER.


Byline: Susanne M. Schafer 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 Clinton administration Noun 1. Clinton administration - the executive under President Clinton
executive - persons who administer the law
 expressed concern that the proposed Lockheed-Northrop merger could reduce competition in production of aircraft and electronic-warfare systems.

``No final decisions have been made,'' said one of two senior government officials who briefed reporters last week on condition they not be identified by name or agency.

The briefing amounted to the first time the government has spelled out exactly what it finds troublesome about the proposed $8.3 billion merger of 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., the Antelope Valley's two largest private employers.

The new company would take 25 percent of the Pentagon budget.

The briefing officials contended the companies should not be surprised about the concerns, noting both the Pentagon and Justice Department have been meeting with the companies repeatedly and followed a traditional pattern for studying such mergers.

The Justice Department informed the companies earlier this month that it was fundamentally opposed to the merger, which was announced in July.

Overall, the officials said Thursday there are a number of areas of concern, such as in the potential consolidation of electronic-warfare systems. For example, the merger would produce only one supplier of the airborne early warning The detection of enemy air or surface units by radar or other equipment carried in an airborne vehicle, and the transmitting of a warning to friendly units. Also called AEW.  radars instead of the two that now exist.

It would also create a single source for the electro-optical missile warning systems and merge the two prime contractors for anti-submarine warfare “A/S” redirects here. For the Danish stock company form, see Aktieselskab.

“A/S” redirects here. For the Norwegian stock company form, see aksjeselskap.
 systems, 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.
 charts shown to reporters.

Aircraft also would be a problem, given that Lockheed and Northrop are the companies with the most experience in stealth technology stealth technology, designs and materials engineered for the military purpose of avoiding detection by radar or any other electronic system. Stealth, or antidetection, technology is applied to vehicles (e.g. .

The officials said they had laid out three options in a meeting March 6. The options reflected the government's analysis of the matter as the customer, but they did not amount to demands that the companies must comply with before the government would approve the merger, both officials said.

The three options are divestiture of selected electronics technologies, divestiture of all such technologies and opposition to the merger.

``We did not make a decision,'' nor did the government indicate a preference for any of the options to the companies, the first official said.

``Size per se is not the dominant issue here,'' said one of the officials. ``It's what we can maintain in innovation.''

The officials argued that the government has not changed its policy and that Defense Secretary William Cohen For other persons named William Cohen, see William Cohen (disambiguation).
William Sebastian Cohen (born 28 August 1940) is an author and American politician from the U.S. state of Maine.
 expressed concern more than a year ago about the increased consolidation of the defense industry.

Lockheed Martin is already the nation's biggest defense contractor, with products such as the B-2 stealth bomber and the MX missile system.

Lockheed and Northrop plan to combine strengths in areas such as defense electronics, including the production of sophisticated radar and electronic countermeasures such as those used in the 1991 air war against Iraq.

Lockheed and Northrop vowed to fight any attempt to block the merger, raising the possibility of a court battle if the Pentagon's concerns are not resolved.

Northrop Grumman, based in Los Angeles, employs more than 45,000 people and had 1996 sales of about $8 billion.
COPYRIGHT 1998 Daily News
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1998, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

 Reader Opinion

Title:

Comment:



 

Article Details
Printer friendly Cite/link Email Feedback
Publication:Daily News (Los Angeles, CA)
Geographic Code:1USA
Date:Mar 16, 1998
Words:503
Previous Article:LONG BEACH RESIDENT KILLED IN TRUCK CRASH.(News)
Next Article:QUARTZ HILL BLUE AS PARADE CALLED OFF BECAUSE OF STORM.(News)
Topics:



Related Articles
Economic pressures driving aerospace consolidation.(Special Report: What's Left of L.A. Aerospace?)(Industry Overview)
DELAY OF LOCKHEED MERGER DROPS NORTHROP SHARES.(News)(Statistical Data Included)
LOCKHEED, NORTHROP GET TIME TO SAVE DEAL.(News)
U.S. SUES LOCKHEED, NORTHROP; MERGER PLAN ATTACKED.(News)(Statistical Data Included)
LOCKHEED MERGER CALLED A TOUGH SELL.(News)
JUMBO DEFENSE MERGER HALTED; LOCKHEED CALLS OFF NORTHROP DEAL.(Business)
LOCKHEED MERGER TO AFFECT FEW IN A.V.(NEWS)
LOCKHEED ACQUIRING NORTHROP; $11.6 BILLION DEAL WILL LEAVE ONLY 1 AEROSPACE FIRM BASED IN L.A.(News)(Statistical Data Included)
BOEING WELCOMES MCDONNELL DOUGLAS EMPLOYEES INTO FOLD.(NEWS)
THE RIGHT STUFF? : LOCKHEED MARTIN RELISHES COMPETITION WITH BOEING.(NEWS)

Terms of use | Copyright © 2009 Farlex, Inc. | Feedback | For webmasters | Submit articles