N.Y. Defense Firm Loral to Bid for 90% Stake in LTV Missiles Unit

Loral, a New York defense firm, said Thursday it plans to bid for the missiles operation of LTV Corp., following the collapse of an earlier agreement by a French firm to buy the LTV unit.

Loral would buy a 90% stake in the LTV unit for $230 million and the remaining 10% would be acquired for $30 million by Thomson CSF, the French firm whose earlier effort to buy LTV hit a political wall in Congress and the Bush Administration.

Meanwhile, the Carlyle Group and Northrop would continue with plans to jointly buy LTV’s aircraft business. Dallas-based LTV has been trying to sell the lucrative units to exit its Chapter 11 bankruptcy restructuring.

Loral said company leaders have talked with Defense and Treasury Department officials and believe their proposal will satisfy concerns about foreign ownership. Their offer does not give Thomson a seat on the board or a hand in the management of LTV’s missiles division, which builds the multiple launch rocket system and Army tactical missile system.

Loral has been on an aggressive acquisition binge. It bought the former Ford Aerospace missile operation in Newport Beach, along with a satellite manufacturing business in Sunnyvale.