Northrop may be new takeover target
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.NEW YORK - Wall Street was speculating yesterday that Northrop, Martin Marietta's rival for control of the defence contractor Grumman, could itself become the object of a hostile takeover bid - perhaps by Martin Marietta, writes Larry Black.
Northrop shares rose another dollars 1/2 to dollars 44 1/4 after running up by almost dollars 2 on Wednesday as rumours of a new Martin Marietta bid for both companies continued to circulate.
A week ago Northrop unexpectedly challenged Martin Marietta's friendly dollars 55-a-share merger deal with Grumman, offering dollars 60 a share for the Long Island electronics and aerospace company.
Grumman directors met yesterday to consider the two bids, but any decision is likely to be delayed while an employee group that controls about a third of its shares confers with its advisers.
Many analysts have suggested that Northrop's counter-offer is an attempt to stave off an unwelcome bid for its own assets - a case of 'buy or be bought', as one put it yesterday. The company - which is smaller than Grumman, let alone Martin Marietta - is considered too small to survive in an era of defence industry consolidation.
The speculation was further fuelled on Wednesday when Northrop's chief executive, Kent Kresa, said he would consider serious bids for the company. But he said Northrop was not for sale and would prefer to remain independent.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments