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NEWPORT NEWS AGREES TO A TAKEOVER BY NORTHROP

Newport News Shipbuilding has agreed to a $2.1 billion takeover by Northrop Grumman, the companies announced yesterday. The boards of both companies approved the terms of the transaction, in which Northrop will acquire all the outstanding shares of Newport News for $67.50 each. Northrop will also assume $500 million of Newport News debt. The announcement came a day after the Newport News board met to discuss the deal and adjourned without making any public statement. The Northrop Grumman board had already approved the deal. The merger will create a combined company with a work force of about 97,000. Newport News shares rose 70 cents, to $67.75, while Northrop Grumman shares were up $1.87, to $97.95.

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