Prepared by R.R. Donnelley Financial -- Form 425
FILING PURSUANT TO RULE 425 OF THE
SECURITIES ACT OF 1933, AS AMENDED
FILER: NORTHROP GRUMMAN CORPORATION
SUBJECT COMPANY: TRW INC. (NO. 1-2384)
FILING: REGISTRATION STATEMENT ON FORM S-4
(REGISTRATION NO. 333-83672)
Northrop Grumman filed a
registration statement on Form S-4 (File No. 333-83672)
and a tender offer statement on Schedule TO with the SEC on March 4, 2002 with
respect to its offer to exchange all outstanding shares of TRW capital stock for
Northrop Grumman
stock. These documents contain important information. TRW
shareholders should read these documents and any amendments or supplements
thereto before making any decision regarding the offer to exchange. Copies of
such documents may be
obtained without charge at the SEC's website at
www.sec.gov or from D.F. King & Co., Inc. the information agent for the offer to
exchange, at 800-755-7250.
The directors, certain executive officers and other employees and
representatives of Northrop Grumman may be deemed to be participants in the
solicitation of proxies of TRW shareholders in connection with shareholder
proposals relating to the 2002 Annual Meeting of TRW Shareholders and a Special
Meeting of TRW Shareholders to be held on April 24, 2002 and April 22, 2002,
respectively. Northrop Grumman has filed proxy materials for these shareholder
meetings which contain information regarding such potential participants.
Northrop Grumman's proxy materials contain important information and should be
read by TRW shareholders. These proxy materials and any amendments thereto may
be obtained at no charge at the SEC's website at www.sec.gov as they become
available.
The following press release was issued by Northrop Grumman on April 22, 2002.
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NEWS NORTHROP GRUMMAN |
|
Northrop Grumman Corporation
Public Information
1840 Century Park East
Los Angeles, California 90067-2199
Telephone 310-553-6262
Fax 310-556-4561 |
Contact: Frank Moore
(Media) (310) 201-3335
Gaston Kent (Investors) (310) 201-3423
For Immediate Release
NORTHROP GRUMMAN RELEASES DETAILS
OF TRWS CONFIDENTIALITY AGREEMENT
LOS ANGELESApril 22, 2002Northrop Grumman Corporation
(NYSE: NOC) announced today that it will file with the Securities and Exchange Commission (SEC) a letter sent Sunday, April 21, 2002, to TRWs general counsel, detailing Northrop Grummans specific concerns with TRWs confidentiality
agreement.
April 21, 2002
William B. Lawrence
Executive Vice President and
General Counsel
TRW Inc.
1900 Richmond Road
Cleveland, Ohio 44124
Re: Confidentiality Agreement
Dear Mr. Lawrence:
We are in receipt of the form of Confidentiality Agreement you sent to us on
April 18, 2002.
The confidentiality provisions you have proposed are generally acceptable and present no significant issues. We
are prepared to agree to them without material modification.
NORTHROP GRUMMAN RELEASES DETAILS
OF TRWS CONFIDENTIALITY AGREEMENT
In addition to the confidentiality provisions, however, TRW has added a number of unrelated provisions, including a three year standstill
agreement which is quite inappropriate in the circumstances.
Northrop Grummans strong and sincere desire is to enter into
a negotiated transaction with the approval and whole-hearted support of both companys boards of directors and shareholders. We cannot accept a standstill agreement, however, which prohibits shareholders of Northrop Grumman and TRW from even
learning of a Northrop Grumman proposal unless TRWs board of directors first decides that they may do so.
The following
are among the specific concerns that we have:
1. Although the proposed agreement permits Northrop
Grumman to continue its pending offer and seek shareholder approval at the Special Meeting, it prohibits the exchange of a single TRW share without TRWs prior approval even if the TRW shareholders have approved the control share
acquisition and holders of a majority of the TRW shares desire to accept Northrop Grummans offer.
2. Should Northrop Grummans present exchange offer be abandoned for any reason, it prohibits Northrop Grumman from submitting any new proposal without TRWs prior consent. For example, Northrop Grumman would be
prohibited from offering to acquire TRW after completion of the automotive spinoff.
3. The
three-year duration of the standstill would prohibit Northrop Grumman from submitting any new acquisition proposal even if present circumstances should radically change as the result of the passage of time, TRWs present restructuring plan or
developments in our respective industries.
4. We believe the prohibition on publicly disclosing
any new proposal Northrop Grumman may wish to make for TRW serves only to enable the TRW board to decide what information shareholders will be able to consider, and deprive them of any voice in the direction of their investment. Furthermore, it
would prevent Northrop Grumman from disclosing to its own shareholders information which is important to their investment.
5. TRWs requirement that Northrop Grumman agree in advance that it will abide by any procedures that TRW may adopt for the submission of proposals could, obviously, bind us to a bidding process
designed to tip the playing field in favor of others.
We agree that the TRW Board of Directors or an independent
committee of the board has a key role to play in the process. Such a role is guaranteed by Ohios extraordinary antitakeover legislation. Ultimately, however, we believe the owners of the company should be able to decide for themselves what to
do with their investment.
NORTHROP GRUMMAN RELEASES DETAILS
OF TRWS
CONFIDENTIALITY AGREEMENT
As you know, last Thursday we sent you a straightforward confidentiality agreement which had been
used by our two companies in the pastwithout the standstill and other extraneous provisions and we see no reason why that agreement is not perfectly acceptable for the purpose of exchanging non-public information. In an attempt to move
the process ahead without delay, however, we are also returning herewith a second confidentiality agreement which is taken substantially verbatim from the draft we received last Thursday and excludes those provisions which are unrelated to the
protection of proprietary information. We are prepared to commence our due diligence procedures as quickly as TRW is willing to schedule them. We believe the interests of TRW and its shareholders will best be served by moving ahead without delay in
order that they may be informed as to the results. If you would provide us a suggested schedule for due diligence meetings, I believe we can reach agreement and begin the process very promptly.
Sincerely,
W. Burks
Terry
Northrop Grumman also said that the filing will contain TRWs proposed confidentiality agreement, received April 18
by Northrop Grumman, and an edited version the company sent back to TRW Sunday, April 21. Both documents are available for review at the SECs Web site, www.sec.gov.
The company said it remains committed to achieving a negotiated transaction with TRW, but must be able to conduct an effective due diligence process. Northrop Grumman reiterated its
desire to enter into a negotiated transaction with TRW. Such a transaction that delivers full and fair value to TRWs shareholders is possible only if Northrop Grumman is able to conduct an effective due diligence. Northrop Grumman welcomes an
opportunity to initiated these discussions.
Northrop Grumman Corporation is an $18 billion, global defense company with its
worldwide headquarters in Los Angeles. Northrop Grumman provides technologically advanced, innovative products, services and solutions in defense and commercial electronics, systems integration, information technology and nuclear and non-nuclear
shipbuilding and systems. With nearly 100,000 employees and operations in 44 states and 25 countries, Northrop Grumman serves U.S. and international military, government and commercial customers.
NORTHROP GRUMMAN RELEASES DETAILS
OF TRWS
CONFIDENTIALITY AGREEMENT
Northrop Grumman filed a registration statement on Form S-4 (File No. 333-83672) and a tender
offer statement on Schedule TO with the Securities and Exchange Commission on March 4, 2002 with respect to its offer to exchange all outstanding shares of TRW Inc. stock for Northrop Grumman common stock. These documents, and any amendments or
supplements thereto, contain important information which should be read by TRW Inc. shareholders before making any decision regarding the offer to exchange.
The directors, certain executive officers and other employees and representatives of Northrop Grumman may be deemed to be participants in the solicitation of proxies for the Special Meeting of TRW Inc. Shareholders to
be held on May 3, 2002 and the 2002 Annual Meeting of TRW Inc. Shareholders to be held on April 24, 2002. Northrop Grummans proxy materials contain important information regarding such potential participants and other matters and should be
read by TRW Inc. shareholders.
Copies of any of the foregoing documents may be obtained without charge at the Securities and
Exchange Commissions website at www.sec.gov or upon request from D.F. King & Co., Inc., the information agent for Northrop Grummans offer to exchange, at 800-755-7250.
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0402-107
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