Both sides are claiming victory after TRW shareholders voted to allow Northrop Grumman access to non-public information on the company in the hope of an improved takeover bid.
Northrop Grumman believes the vote at TRW's 24 April annual meeting "sends a strong message" that the company should begin negotiations, while TRW points out that two proposals intended to remove obstacles to Northrop Grumman's hostile takeover were voted down.
TRW, meanwhile, has agreed to provide access to another unidentified potential buyer which has signed a confidentiality agreement. Northrop Grumman has refused to sign a confidentiality agreement because it includes an "inappropriate" three-year standstill provision which would hamstring its pending share exchange offer.
Although the standstill agreement would allow the offer to continue, it would prevent Northrop Grumman informing shareholders of any improvement to its offer that could result from gaining access to TRW's books.
Speculation has swirled around whether Lockheed Martin is the unidentified potential buyer, and whether the US Department of Defense (DoD) is preparing to block such a bid.
Lockheed Martin confirms it has discussed Northrop Grumman's proposed takeover of TRW with the DoD, but declines to say whether it plans a rival bid. The company has reportedly objected to Northrop Grumman's proposed takeover of TRW on the grounds that it would reduce competition for satellite payloads.
Source: Flight International
