Titan’s CEO: Defense Contractor Not for Sale

Titan Corp., whose failure to resolve a federal bribery probe doomed its $1.66-billion takeover by Lockheed Martin Corp., is now not for sale, Chairman and Chief Executive Gene Ray said.

“We’re strong financially. We have the liquidity to handle all foreseeable contingencies,” Ray said in a telephone interview Tuesday from the defense contractor’s San Diego headquarters. “We’re excited about going forward to make Titan a stronger company than it’s ever been before.”

Lockheed, the largest U.S. defense company, dropped its offer after Titan missed a Friday deadline to settle a Justice Department investigation into whether payments made by Titan consultants in Asia, Saudi Arabia and the African nation of Benin violated the Foreign Corrupt Practices Act.

Titan may be an “attractive acquisition candidate” again within six to 12 months for companies such as Northrop Grumman Corp. and General Dynamics Corp. if a resolution is reached on the probe, said Timothy Quillin, an analyst at Stephens Inc.

When asked whether he expected other offers, Ray said, “I don’t know how to forecast that at all; I just know that we are not for sale.”

Titan still has “a fiduciary responsibility” to consider offers if they are presented, he said.

Century City-based Northrop and Falls Church, Va.-based General Dynamics declined to comment on whether they would make offers for Titan.

Shares of Titan dropped 45 cents Wednesday to $12.98 on the New York Stock Exchange, their lowest close since July 23.

Ray said he couldn’t comment on the status of the Justice Department probe.

Titan still has an incentive to settle the case: to avoid a trial and the risk of being barred from future government contracts, one penalty allowed under the Foreign Corrupt Practices Act.