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TRW Digs In Its Defenses Over Northrop Grumman Bid
New York (AFP) Apr 17, 2002 TRW dug in its defenses Wednesday against a hostile offer by Northrop Grumman, saying that a sweetened 6.7 billion-dollar offer was still "financially inadequate." The announcement was the latest in a series of refusals by TRW, an aerospace and auto parts manufacturer, aimed at fending off a hostile bid by Northrop that would create the largest US defense contractor. Northrop Grumman recently boosted its offer to 53 dollars per share, up from the 47 dollars offered earlier, and accused TRW's board of directors of ignoring the interests of shareholders in rejecting a merger. But TRW said it decided on the latest bid "after careful consideration, including consultation with independent financial and legal advisers." The bid "is financially inadequate and not in the best interests of TRW's shareholders," TRW said in a statement. "Accordingly, the Board of Directors strongly recommends that TRW shareholders reject Northrop's offer and not tender their shares for exchange." TRW said Northrop's revised offer "continues to undervalue TRW's businesses and its opportunities" and claimed its own strategic plan to accelerate debt reduction and separate its automotive and defense businesses could deliver more value than the Northrop bid.
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