NORTHROP GRUMMAN MERGER AGREEMENT
BETHESDA, Maryland, July 16, 1998 -- Lockheed Martin announced today that its board of directors has terminated the Corporations merger agreement, announced in July of 1997, with Northrop Grumman Corporation.
In March 1998, the U.S. Department of Justice moved in the Federal District Court of Washington D.C. to block the merger. Since that time the Corporation has worked with the government to achieve a solution to permit the transaction to proceed. This effort has not been successful.
Our inability to reach an acceptable solution, combined with our concern over the litigation with our principal customer, necessitates this decision, said Vance Coffman, Lockheed Martin chairman and chief executive officer. Continuing the litigation at this point is simply not in the best interests of Lockheed Martins customers, shareholders or employees.
I extend my personal thanks to Defense Secretary William Cohen and his team for their good faith efforts to resolve this complex issue and look forward to continuing our excellent working relationship, said Coffman.
Looking ahead, I am very confident about the future of Lockheed Martin, added Coffman. Our portfolio of businesses continue to be leading competitors in their markets and we intend to continue our strategy of strengthening our positions in the global marketplace.
I want to thank Kent Kresa and his Northrop Grumman team for their cooperation and hard work in our attempt to put together this proposed combination. While it is regrettable that we were not able to consummate the merger, we fully intend to continue our strong relationship with them as team members, customers and suppliers, said Coffman.
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