Mar 20 2002
TRW may spin off its automotive division to form a separate public company. If the proposal goes ahead, it is likely to do so before the end of the year and will leave defence, aeronautical and electronics divisions as the core activities of the original company.
In other news at TRW, the board have advised shareholders to reject an offer of $47 per share for all outstanding shares from Northrop Grumman, based on several fact.
- The offer grossly undervalues TRW
- The offer was made when TRW stock were temporarily depressed following the surprise resignation of the David Cote, the President, chief executive officer and former chairman. Sticks are currently trading significantly above the $47 mark.
- Northropp Grumman have placed several conditions on the deal, casting some doubt as to whether or not the deal will go ahead
After having sort independent advice, the board have concluded that the offer is not in the best interests of the shareholders.