Northrop rejects TRW confidentiality agreement

LOS ANGELES, April 22 Reuters is reporting that U.S. defense giant Northrop Grumman Corp. said on Monday it will not sign a confidentiality agreement offered by acquisition target TRW Inc. because of ``onerous restrictions'' included by the defense and auto parts company.

Northrop Grumman, which is pursuing a hostile $6.7 billion takeover of the Cleveland-based TRW, said the proposed confidentiality agreement -- which would give the defense company access to TRW's books -- includes a so-called standstill clause, among other things.

Standstill agreements typically prevent an interested buyer from pursuing a hostile bid should the target choose another suitor.

Northrop Grumman's rejection of the agreement comes just two days before TRW's annual meeting, where shareholders will vote on three nonbinding proposals that include a recommendation to give Northrop Grumman access to the company's books.