Printer Friendly

THOMSON-CSF, HUGHES AIRCRAFT CO. & THE CARLYLE GROUP OFFER $400 MILLION FOR LTV AEROSPACE AND DEFENSE GROUP

 THOMSON-CSF, HUGHES AIRCRAFT CO. & THE CARLYLE GROUP
 OFFER $400 MILLION FOR LTV AEROSPACE AND DEFENSE GROUP
 WASHINGTON, April 1 /PRNewswire/ -- Thomson-CSF, Hughes Aircraft Company and the Carlyle Group offered to purchase the LTV Aerospace and Defense Group for $ 400 million. The overall bid is the highest to date giving the largest amount of cash to the creditors.
 Under terms of their combined purchase, Thomson-CSF and Hughes, as a minority partner, would acquire the LTV Missiles Division for $280 million in cash. The Carlyle Group, an investment firm with a large commitment in the defense business, led by former U.S. Secretary of Defense Frank Carlucci, would acquire the LTV Aircraft Division for $90 million in cash and $30 million preferred stock.
 The Thomson-CSF/Hughes/Carlyle bid would provide enhanced value, both in terms of cash and overall value of the offer to LTV creditors and ultimately to the U.S. taxpayer. It would result in an extremely attractive development for both LTV divisions, their employees and the U.S. Government.
 Further, in the acquisition proposed by Thomson- CSF/Hughes/Carlyle, no anti-trust complications are anticipated.
 Following acquisition, each division would be separately capitalized and operated independently to fully realize their intrinsic values and potential. The inherent strengths of Thomson- CSF and Hughes, world leaders in defense electronics, make them best suited to manage the LTV Missiles Division and assure continued U.S. employment. With Carlyle's international business acumen (exemplified by ownership of BDM International), the LTV Aircraft Division will be well managed while increasing its market in the civilian aviation sector on a worldwide basis.
 LTV Missiles Division
 The LTV Missiles Division (LTV/MD) would remain an American company, governed by U.S. laws and all relevant U.S. government regulations, including U.S. Department of Defense restrictions to prevent the unauthorized disclosure of classified information or transfer of sensitive technology. Compliance would be ensured by a Special Security Agreement (SSA), written to Department of Defense specifications.
 Thomson-CSF has reached agreement in principle on the terms of a draft SSA from the Defense Investigative Service, subject to final approval of the Department of Defense. Security compliance would be overseen by an eight-member board of directors, with all but one being U.S. citizens.
 Thomson-CSF Chairman Alain Gomez, stated: "LTV/MD would stay an American company. The management, employees and suppliers would be retained. We would bring to LTV/MD a potential global market for expanded American employment, less dependency on a diminishing U.S. defense budget and cutting edge technology. We have already developed a close relationship with LTV/MD on several projects. We have this same good working relationship with all our U.S. partners."
 LTV Aircraft Division
 This acquisition offers the LTV Aircraft Division the prospect of stable, responsible ownership, enhanced by the benefit of Carlyle's strategic direction and commitment to the long term. Established as an independent company, the Aircraft Division would be able to speed the development of new technologies and services and the application of defense-related expertise to higher-growth commercial markets, critical ingredients for future growth.
 Carlyle plans to retain current management and is committed to offer stock incentives to the management and employees.
 Concerning the Aircraft Division, Carlucci, head of the Carlyle Group and the proposed new CEO of the LTV Aircraft Division, stated: "I look forward to welcoming the LTV Aerospace Division to our Carlyle Group which has $3 billion in revenues annually, consists of various enterprises such as the defense-related BDM International and the civilian aerospace company Caterair International. We have an excellent track record of no layoffs, no plant closings and no relocations. We're in business for the long haul."
 The Thomson-CSF/Hughes/Carlyle bid, if accepted, will end five years of uncertainty for the LTV Aerospace and Defense Group employees and open doors for new and expanded opportunities.
 -0- 4/1/92
 /CONTACT: Dick Keating, 703-769-4776, or Colin Boardman, in Paris, 49-07-84-16, both of Thomson-CSF, Inc.; or Richard Dore of Hughes Aircraft Co., 310-568-6324; or David Rubenstein of the Carlyle Group, 202-347-2626/ CO: Thomson-CSF, Inc.; Hughes Aircraft Co.; The Carlyle Group;
 LTV Aerospace and Defense Group ST: District of Columbia IN: ARO SU:


SB-MH -- DC022 -- 4028 04/01/92 16:18 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 1, 1992
Words:702
Previous Article:COMERICA ANNOUNCES BANKCARD RATE CHANGES
Next Article:THE HUNTINGTON NATIONAL BANK TO INSTALL TRADING ROOM DIGITAL SYSTEM
Topics:


Related Articles
LTV ANNOUNCES AGREEMENT FOR ACQUISITION OF ITS AIRCRAFT AND MISSILE BUSINESSES BY LOCKHEED AND MARTIN MARIETTA
LTV ANNOUNCES DEFINITIVE AGREEMENT WITH VOUGHT FOR ACQUISITION OF AEROSPACE UNITS
NEWLY FORMED VOUGHT CORPORATION SIGNS CONTRACT TO ACQUIRE LTV'S AIRCRAFT AND MISSILES DIVISIONS
THOMSON-CSF PROMISES TECHNOLOGY TO EXTEND THE CAPABILITIES AND REACH OF LTV MISSILES
LEADING DEFENSE INDUSTRY CEOS SAY FOREIGN GOVERNMENTS' OWNERSHIP OF AMERICA'S PRIME DEFENSE CONTRACTORS THREATENS NATIONAL SECURITY
LORAL AGREES TO BUY LTV'S MISSILES DIVISION
LTV REPORTS $138.6 MILLION SECOND QUARTER INCOME
LTV REPORTS $138.6 MILLION SECOND QUARTER INCOME
LTV TO SELL DEFENSE UNIT TO MARTIN MARIETTA
Up in arms: Thomson withdraws its bid, but the fate of LTV's East Camden operations remains uncertain.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters