Northrop Gives Regulators More Time to Review Litton Deal

Northrop Grumman Corp. has refiled the paperwork for its $5.1 billion acquisition of Litton Industries Inc. to give U.S. and European regulators more time to review the deal.

Officials with Northrop Grumman of Los Angeles said Feb. 27 that the company still expects the acquisition to be completed by late March 2001. The company withdrew and then refiled its Hart-Scott-Rodino notification to give regulators more time.

The acquisition is a cash deal and beginning Friday, Northrop Grumman will extend its tender offer for Litton stock in five-day or less increments until the government reviews are over and the deal is completed.

The deal for Litton of Woodland Hills, Calif., will create a company with $13.2 billion in annual revenue. The IT portion of the business will bring in about $2.9 billion annually and includes Northrop's Logicon unit and Litton's PRC and TASC businesses.

Also this week, Litton announced that its net earnings for the second quarter were $49.7 million versus $36.8 million in the second quarter of fiscal 2000. Revenue for the quarter was $1.34 billion, compared with $1.35 billion in the comparable period last year.