LOS ANGELES — Defense contractor Northrop Grumman Corp., which is competing with rival General Dynamics to acquire Newport News Shipbuilding, said today it would comply with a Department of Justice request for additional information on its proposed takeover bid.
According to reports, the Department of Justice made the request yesterday under antitrust regulations.
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Last month, Northrop Grumman offered to exchange $67.50 in cash or stock for each of Newport News’ outstanding common shares. Northrop’s offer followed a similar proposal by General Dynamics in April.
Northrop’s $2.1 billion offer is essentially the same as General Dynamics’ bid, but is only 25 percent cash, as compared with General Dynamics’ all cash offer. Both offers include the assumption of $500 million in debt. Earlier this month, Newport News’ board of directors voted in favor of General Dynamics’ bid.
Shares of Northrop Grumman were trading up 38 cents, at $84.18, in afternoon trading. Shares of General Dynamics were also trading up, gaining 66 cents at $75.39.
