LITTON INDUSTRIES BUYS AVONDALE SHIPYARD
Shipbuilder Avondale Industries accepted a $529 million bid from Litton
Industries Inc. to take over the New Orleans-based shipyard.
Litton was successful after Newport News Shipbuilding dropped out of the
bidding.
Newport News had announced in January that it planned to acquire
Avondale through a stock transaction of about $470 million, though the
agreement allowed both companies to explore options with other companies.
Litton offered to buy both Avondale and Newport News in May for about
$1.7 million in cash and stock, but the Pentagon opposed Litton’s
acquisition of Newport News, because it would eliminate competition for
military contracts.
