Northrop to Delay TRW Bid

Northrop Grumman Corp. agreed to halt its $6.7-billion hostile takeover bid for TRW Inc. until Sept. 30 while it reviews the smaller defense contractor’s financial information, according to a regulatory filing.

The length of the so-called standstill agreement had been at the center of a dispute between the companies about opening talks on a possible Northrop acquisition. Cleveland-based TRW had sought a longer delay.

The agreement would be extended another year if TRW announces on or before Sept. 30 that it has entered into a combination involving all or most of the company, according to the Securities and Exchange Commission filing. Northrop agreed to the accord Monday after weeks of acrimony between the companies, signaling the No.4 U.S. defense contractor may sweeten its offer.

TRW had called Northrop’s $53-a-share offer inadequate and proposed a plan to separate its automotive business from the defense unit to increase shareholder value. The firm’s shares rose 6 cents to $55.05 on the New York Stock Exchange.

Northrop shares rose $2.14 to $121.61, also on the NYSE. The Los Angeles-based company would assume about $5.5 billion in TRW debt under its takeover proposal.