TRW rejects Northrop offer

Wednesday, April 17, 2002 | 11:25 a.m.

CLEVELAND -- TRW Inc. today rejected Northrop Grumman Corp.'s sweetened $12.2 hostile takeover bid and said it would share confidential information with other interested parties.

TRW said the latest bid, which was increased Sunday to $53 a share from $47, is still inadequate. The company raised its second-quarter and full-year earnings forecasts, touting sales of military hardware, and said first-quarter profit rose 17 percent.

"TRW just reported terrific earnings," said Van Harissis, who helps manage $2 billion at National Life Insurance Co., including TRW shares. "It becomes more critical for Northrop to get serious and raise this offer." He suggested a price of $56.

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