Northrop bids for TRW

Northrop Grumman Corp. has filed a $5.9 billion unsolicited bid to buy TRW Inc., a move that would merge two giant defense contractors.

"We believe the strategic combination of Northrop Grumman and TRW will provide tremendous value to the shareholders of both companies," said Kent Kresa, Northrop Grumman's chairman and chief executive officer. "Northrop Grumman's electronics and systems integration capabilities, combined with TRW's space and systems expertise, would create a strong contributor to the nation's satellite and missile defense requirements."

The combination would strengthen Northrop Grumman's long-term strategy by improving its space business, adding communications technology and capabilities, and enhancing its information technology business, he said in a statement.

TRW, in a statement, said its board would review Northrop's proposal.

The offer, however, comes just days after the unexpected announcement that TRW CEO David Cote had resigned to join Honeywell International Inc.

Northrop is one of the biggest government information technology integrators following a number of acquisitions, including its purchase of Grumman Logicon Inc., Comptek Research Inc., Federal Data Corp., Sterling Software Inc.'s federal group and Litton Industries Inc.