TRW Inc. said Friday that its shareholders voted to block Northrop Grumman Corp.’s $6.7 billion hostile takeover attempt, rejecting the defense contractor’s bid to acquire more than 20 percent of TRW’s shares.
A vote total was not immediately available, but TRW Chairman Philip Odeen said, “I would characterize it as a clear-cut victory.”
Northrop officials said they were going to let their offer to buy TRW for $53 a share lapse Friday night and announce on Monday whether they still want to buy the company.
However, according to sources on both sides, the companies left the door open to a possible friendly deal and they were expected to hold talks over the weekend.
Under Ohio’s tough anti-takeover laws, Northrop cannot buy more than 20 percent of TRW’s stock without permission of stockholders. Northrop has challenged the laws in federal court.
