Northrop Grumman Raises Offering Price for TRW to $6.7 Billion

The defense company lifts its bid by 13%.

Author:: Michael Dunn
Publish date:: Apr 15, 2002 8:24 AM EDT

Global defense company

Northrop Grumman

(NOC) - Get Report

increased its offer to acquire

TRW

(TRW)

to $53 a share in stock, pending a May 3, 2002, approval.

Northrop Grumman originally proposed the acquisition in February for stock worth $47. The company said it's raising its offering price due to "improving economic conditions which drive TRW's end markets."

The 13% increase brings the value of the deal to about $6.7 billion and comes after TRW advised its shareholders to reject the original offer because it was inadequate. In response to the latest offer, TRW advised shareholders not to take any action until it makes a recommendation.

Shares of TRW were recently trading up 1.8% to $52.90 in Instinet premarket trading after closing at $51.97. NOC was falling 3.3% to $114.40.