|
NEWPORT NEWS SHIPBUILDING OPENS
DISCUSSIONS WITH NORTHROP GRUMMAN
NEWPORT NEWS, Va., October 5, 2001 – Newport
News Shipbuilding (NYSE: NNS) today announced
that its Board of Directors has determined that discussions
with Northrop Grumman (NYSE: NOC) could result
in Northrop Grumman making an offer to acquire Newport
News Shipbuilding that is superior to General Dynamics'
(NYSE: GD) existing offer of $67.50 in cash
for all the outstanding shares of common stock of
Newport News Shipbuilding. Based upon the closing
price of Northrop Grumman’s common stock of $106 on
October 4, 2001, the Northrop Grumman offer would
have a value of $72.67 per share of Newport News Shipbuilding.
Accordingly, the Board has determined to initiate
discussions with Northrop Grumman concerning a possible
acquisition of Newport News Shipbuilding.
Although the Board of Newport News Shipbuilding has
determined to pursue discussions with Northrop Grumman,
the Board reaffirms its recommendation of the General
Dynamics offer because there is no assurance that
Newport News Shipbuilding and Northrop Grumman will
be able to reach a satisfactory agreement.
Newport News Shipbuilding designs and constructs
nuclear-powered aircraft carriers and submarines for
the U.S. Navy and provides life-cycle services for
ships in the Navy fleet. The company employs 17,800
people and has annual revenues of approximately $2
billion. Visit NNS on the Web at www.nns.com
The Solicitation/Recommendation Statements, as
amended, filed by Newport News Shipbuilding with the
SEC with respect to the General Dynamics offer and
the Northrop Grumman offer contain important information
that should be read carefully before any decision
is made with respect to the General Dynamics offer
or the Northrop Grumman offer. Investors and
security holders may obtain a free copy of the Solicitation/Recommendation
Statements and other documents filed by Newport News
Shipbuilding with the SEC at www.sec.gov.
The Solicitation/Recommendation Statements and these
other documents may also be obtained by contacting
Newport News Shipbuilding Investor Relations at 757-688-6400.
|
