Rival bid launched for shipbuilding firm

NEW YORK – Northrop Grumman Corp. has launched an unsolicited bid to acquire Newport News (Va.) Shipbuilding Inc., a move that undercuts General Dynamics Corp.’s planned acquisition of the Virginia shipbuilder, General Dynamics said Tuesday.

In a statement, General Dynamics officials are “disappointed that Northrop Grumman has chosen to interfere in a proposed transaction agreed upon by the respective boards of directors of General Dynamics and Newport News Shipbuilding.”

General Dynamics, owner of Bath Iron Works, hopes to become the sole manufacturer of Navy aircraft carriers and submarines by acquiring Newport News Shipbuilding for $2.1 billion. Company officials announced the deal two weeks ago, saying it would streamline management of the two nuclear-capable shipyards in the United States, saving money for the Navy, their biggest customer.

Northrop’s bid would come in at the same price as General Dynamic’s offer for Newport News Shipbuilding, the Wall Street Journal reported on its Web site.