For Northrop, A Shot At Survival

After a tense showdown with Martin Marietta, Northrop has won the fight to acquire Grumman. So what does Northrop get for its $62-a-share, $2.2 billion splurge? A fair shot at surviving in the shrinking defense industry, for one thing. Even with Grumman, though, Northrop comes out only a weak third to Lockheed and McDonnell Douglas in military aircraft manufacturing. True, Grumman will bring Northrop some lucrative electronics contracts and aircraft upgrades. But as Northrop's B-2 bomber contracts wane, the combined company has slim prospects for new aircraft orders.

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