TRW Digs In Its Defenses Over Northrop Grumman Bid
the chips are far from down at TRW
late update
Northrop Grumman Responds To TRW's Confidentiality Agreement
Los Angeles - Apr 22, 2002 - Northrop Grumman Corporation announced today that it received a confidentiality agreement from TRW Inc. on April 18 and released the following statement in response. "Northrop Grumman wants to achieve a negotiated transaction with TRW. This is not possible unless we are able to conduct an effective due diligence. The proposed confidentiality agreement contains so-called 'standstill' and other provisions having nothing to do with confidentiality. These onerous restrictions do not serve the interests of achieving effective negotiations between Northrop Grumman and TRW and, as a result, do not serve the interests of TRW shareholders. "Northrop Grumman urges the TRW shareholders to send the message that they expect the TRW board of directors to follow through on what it said it would
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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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