Raytheon, GM in Dispute Over Hughes Sale
Raytheon Co. sued General Motors Corp. to block arbitration of Raytheon’s claim that GM overvalued by $1 billion its Los Angeles-based Hughes defense business it sold to Raytheon in 1997. In the suit, filed in Delaware Chancery Court, Raytheon said GM hasn’t turned over the proper financial information to justify taking the case to arbitration, according to court papers. Raytheon bought the Hughes business from GM for $9.5 billion during a period of consolidation in the aerospace and defense industries. The suit doesn’t specify how much Raytheon is seeking in “purchase-price adjustments.” Shares of Detroit-based GM rose $2.13 to $93.38. Lexington, Mass.-based Raytheon’s Class B shares fell 75 cents to $54.88. Both trade on the NYSE.