Northrop Exec Makes Newport News an Offer

Northrop Grumman Corp. Chief Executive Kent Kresa said he would negotiate the defense company’s $2.6-billion hostile bid for Newport News Shipbuilding Inc. if Newport agrees to open its financial books.

“If we are provided the opportunity to conduct a due diligence review of Newport News, we should be prepared to immediately negotiate all aspects of our exchange offer,” Kresa wrote in a letter sent to Newport News CEO William Fricks.

Los Angeles-based Northrop and Falls Church, Va.-based General Dynamics Corp. have offered to buy Newport News, the only remaining independent maker of military ships for the U.S. Navy.

On the NYSE, Northrop fell $1.56 to close at $83.80, while General Dynamics rose 38 cents to close at $74.73.