Titan

(TTN)

sank like a stone at the open Friday after

Lockheed Martin's

(LMT) - Get Report

agreement to buy the defense technology company for $1.6 billion fell apart.

Titan was informed Thursday that Lockheed won't extend a deadline by which Titan had to get a plea agreement in place to resolve an overseas bribery probe being pursued by the U.S. government. Lockheed offered to acquire Titan in September 2003 and has twice extended the offer, which came out to $20 a share.

Titan was recently down $3.24, or 17.7%, to $15. Lockheed was up 17 cents, or 0.3%, to $52.28.

Titan is under federal investigation for employing consultants who allegedly paid bribes to foreign officials. As part of the merger amendment, Titan had to obtain written confirmation that the Justice Department "considers its investigation of these allegations resolved and does not intend to pursue any claims against Titan," or must have a plea agreement in place and have completed the sentencing process.