NEWPORT NEWS SHIPBUILDING
RECEIVES
REVISED PROPOSAL
FROM NORTHROP GRUMMAN
NEWPORT NEWS, Va., November 6, 2001 – Newport News
Shipbuilding (NYSE: NNS) said that it
has received a revised proposal from Northrop Grumman
Corporation (NYSE: NOC) in which the “collar”
used in determining the amount of Northrop Grumman
Common Stock and cash to be received by Newport News
stockholders would be adjusted so that Newport News
stockholders would receive a value of $67.50 per share
if the market value of Northrop Grumman Common Stock
does not exceed $100 per share and is not less than
$80 per share.
Newport News said that it has been advised by Northrop
Grumman that the Northrop Grumman Board of Directors
has approved this proposal.
Newport News said that it expects that its Board of
Directors will meet on Wednesday, November 7, to consider
the new Northrop Grumman proposal. The proposal
is subject to the negotiation of a mutually satisfactory
merger agreement. There can be no assurance
that such an agreement will be reached.
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 Northrop Grumman offer contains important
information that should be read carefully before any
decision is made with respect to 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.
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