Northrop makes first step to spin off shipbuilding unit to shareholders

[unhappycamper]

The Northrop Grumman Newport News Shipyard as seen Wednesday, July 14, 2010.


Northrop makes first step to spin off shipbuilding unit to shareholders
By Peter Frost, [e-mail] | 247-4744
4:19 p.m. EDT, October 15, 2010

Northrop Grumman Corp. on Friday took the first regulatory step toward spinning off its shipbuilding unit.

The company that owns the Newport News shipyard filed a document with the Securities and Exchange Commission called a Form 10 registration that details Northrop's plan to spin off its $6 billion-a-year shipbuilding business to shareholders.

Northrop cautioned that the filing is merely a first step in the process and said it continues to explore a range of alternatives for the business, including a potential sale.

"A spin off remains our primary focus," said Randy Belote, a Northrop spokesman. "This is a national asset with unique capabilities, and we believe that if it stands alone, it has a better opportunity for growth and to meet customer requirements."

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The inclusion of the program is noteworthy because it signals Northrop believes it has a legitimate shot to at least share in building the $4 billion to $7 billion subs, called the Ohio Class replacements.

[TexasObserver]

1. Subterfuge to get more business, it appears.

One can only imagine the graft this will mean to some of the company insiders.