General Dynamics losing support for shipbuilding deal

Tuesday, Oct. 9, 2001 | 9:38 a.m.

FALLS CHURCH, Va. -- General Dynamics Corp., which is vying with Northrop Grumman Corp. to buy Newport News Shipbuilding Inc., said the number of investors who support its $2.6 billion offer has declined.

General Dynamics, the No. 5 defense contractor, said about 14.86 million Newport News shares were pledged to its tender offer when it expired on Friday, down about 35 percent from Sept. 24. It renewed its $67.50 a share cash offer, which has been extended weekly for several months, until Oct. 12.

Newport News, which agreed to be acquired by General Dynamics, said Friday it will begin talks with Northrop about a higher offer.

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