Northrop Alters Terms in Newport Deal
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Northrop Grumman Corp. said it is changing the payments that Newport News Shipbuilding Inc. shareholders will receive from its $2.6-billion purchase of the sole maker of nuclear aircraft carriers.
Newport News investors electing to receive cash will get $43.65 and 0.2542 of a Northrop share for each share they own, a Northrop spokesman said. The value of both payments is set at $67.50 a share.
About 45% of shareholders elected to receive cash and stock, Northrop has said. The company previously expected to pay Newport News shareholders $43.63 in cash and 0.2544 of a Northrop share. The new calculation won’t change the combined value of both payments, Northrop said.
The Los Angeles-based company will issue 13.4 million of its shares and pay a total of $511.6 million in cash.
Shares of Northrop Grumman rose 5 cents to $94.86, while Newport News rose 1 cent to $68.28, both on the NYSE.
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