Northrop Grumman could improve its offer for TRW this week, having been allowed access to non-public information after signing a confidentiality agreement. On signing, Northrop Grumman was barred from acquiring further TRW shares until 30 September at the earliest.
Northrop Grumman agreed to sign after TRW shareholders vetoed its proposal to remove the limit, under Ohio anti-takeover laws, on the number of shares it could accumulate. The company had refused to sign because it objected to the demand for a standstill agreement barring another take-over attempt for three years, but signed after TRW agreed to reduce this to six months.
While TRW has signed similar agreements with other parties interested in all or part of the aerospace and automotive firm, analysts expect the two companies to agree a deal adding $3-5 to Northrop Grumman's $53-a-share exchange offer, valuing TRW at $7-7.3 billion plus $5.5 billion in debt.
Source: Flight International
