The Facts About The Last Days of Grumman
This book goes behind closed doors of both executive offices and the Corporate Board Room to disclose details about this corporate takeover that have never before been revealed. The book describes the tense events that lead to the decision to change the basic business strategy of the company. It also tells several political tales that help the reader understand how a major player in the defense industry can be brought to its knees by one signature from one highly placed Washington official.
Months of study and analysis lead Grumman and Northrop to the decision that a merger of equals was the desired path to survival. Unfortunately activities initiated by the companies investment banker, changed the history of events and changed a friendly merger into a hostile takeover.
This book describes all of the significant events before, during and after the acquisition that will serve as lessons learned to those that may, in the future, be involved in partnering activities.
About the book…
The American defense industry has been facing hard times since the famous “last supper” of 1992 when Defense Department officials summoned the heads of all of the big defense companies to Washington. At this meeting the message was made very clear, industry downsizing was going to be a necessity. 50% of the companies that were in attendance, would not be in existence within a year or two. This notice gave rise to a massive series of mergers and acquisitions, in an attempt to create companies that could survive future budget reductions.
Both Grumman and Northrop had carefully studies partnering possibilities and decided to get together in a friendly merger. Key executives of both companies worked for months to insure that the proper steps were taken to insure success in this venture.
Minutes before the final decision was to be made by Grumman’s Board of Directors to approve a merger, Grumman’s investment banker suddenly did a complete turn around that changed what was to be a friendly partnering into a hostile acquisition.
This book reveals all of the details of these last few months at Grumman. The book is laced with interesting political stories that provide a background for a better understanding of how the US political system works and why companies are required to work within this system to survive.