TRW Needs More Time to Review Bid

TRW Inc. said it would be unable to respond today to Northrop Grumman Corp.’s offer to acquire the company for $5.9 billion because it needs additional time to review terms of the deal.

Northrop Grumman, a Century City-based defense contractor, made an unsolicited bid Thursday for TRW, maker of automotive parts and defense electronics and asked the company to respond by Feb. 27.

In a letter to Northrop Chairman Kent Kresa, TRW’s top two executives said the company “will conduct board discussions in the near future and will respond in a timely fashion, but it will not be before the close of business Feb. 27, 2002.”

A Northrop spokesman declined to comment other than to say the company was “looking forward to a prompt response.” Northrop has retained a proxy solicitation firm in the event it makes a hostile bid for Cleveland-based TRW.

TRW shares rose 44 cents to close at $50.75, after surging 26% since the bid was announced. Northrop fell 72 cents to $107.72. Both trade on the New York Stock Exchange.