WASHINGTON Ñ A leading U.S. aerospace manufacturer has embarked on a
hostile takeover that could affect the missile defense industry.
Northrop Grumman has launched a bid to acquire TRW Systems in a hostile
takeover that could cost $6 billion. TRW is the prime contractor of the
Tactical High Energy Laser in a joint U.S. project with Israel, according to Middle East Newsline. Northop is
the manufacturer of the Global Hawk unmanned air vehicle, which is being
examined by Israel in a joint venture for its missile defense efforts.
Executives said Northrop wants TRW's laser technology for space-based
missile defense projects, expected to be a focus of the Bush administration.
Northrop has offered $47 for a share of TRW, 18 percent above Thursday's
closing price, and executives said they hope to complete a deal over the
next six months.
"We believe the strategic combination of Northrop Grumman and TRW will
provide tremendous value to the shareholders of both companies," Northrop
Grumman's chairman and chief executive officer Kent Kresa said.
"Northrop Grumman's electronics and systems integration capabilities,
combined with TRW's space and systems expertise, would create a strong
contributor to the nation's satellite and missile defense requirements."
TRW generated $16.4 billion during 2001.
