11th March 2005 - Northrop Grumman Sells 7.3 Million TRW Automotive Shares

Defense contractor Northrop Grumman Corp. on Thursday said it would book a first-quarter gain on the sale of TRW Automotive Holdings Corp. stock.  Northrop Grumman sold 7.3 million TRW shares for about $142.6 million, or $19.65 apiece. The sale, expected to close Friday, will result in a first-quarter after-tax gain of about $70 million, or 19 cents a share.

Analysts surveyed by Thomson First Call currently expect Northrop Grumman to earn 80 cents a share in the first quarter.

The stock was sold to TRW, which will issue and sell the same amount of shares in private transactions with institutional accredited investors. Blackstone Group affiliate Automotive Investors LLC granted its approval of the sale in lieu of the registration of 3 million priority shares required under the TRW stockholders' agreement.

The sale reduces Northrop Grumman's ownership of TRW to 9.9 percent, or 9.7 million shares. Northrop Grumman obtained the TRW equity stake when it sold the company to Blackstone in February 2003.

Northrop Grumman shares fell 1 cent to close at $54.24 and TRW shares fell 4 cents to close at $19.48. Both trade on the New York Stock Exchange.

Source: Northrop Grumman Press Release