Analysis of Northrop Grumman's Takeover of TRW
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Table of Contents Section Page 1.0 Executive Summary 2 2.0 Introduction 3 2.1 Timeline of events 3 2.2 Company Description 4 2.21 TRW Inc. 4 2.22 Northrop Grumman 4 3.0 U.S Aerospace & Defence -The sector explored 4-5 3.1 Big Players 5-6 4.0 Northrop's motives 6 4.1 Good fit or fake jewels? 6-7 4.2 Buying TRW: How and how much? 7 5.0 TRW's motives 7 5.1 Defending the company 7 5.2 Defence tactics, successful? 7-8 6.0 Share price performance 8 6.1 Comparing Share Price Performance Of The Target & Acquirer 8 6.2 Comparing Against The Market and The Sector 9 7.0 Corporate governance issues 9 8.0 Assessing The Takeover - Increases In Market Share 10 8.1 Assessing The Takeover - The Real Bid Premium 10 8.2 Assessing The Takeover - Financial Ratios 11 8.21 P/E Ratio 11 8.22 EPS 11 8.23 Return On Net Assets 11 8.24 Gearing 11-12 8.25 Current Ratio 12 8.3 Assessing The Takeover - Long Term Market Comparison 12 8.4 So, Good fit or fake jewels? 12 9.0 Academic theory 13 10.0 Bibliography 14 1.0 Executive Summary The takeover of TRW Inc. by Northrop Grumman Corp. is an interesting example of a hostile takeover of two similar companies in the U.S aerospace and defence sector. The sector is characterised...

