... evolved throughout the years through multiple acquisitions. These companies heavily hamper smaller companies to expand and compete with them due to their productive capabilities. The main reasons for the takeover were: * Northrop's desire to gain market share in order to compete more efficiently with the leaders in the sector. * The changing environment in the defence sector, which saw the increasing use of hi-tech weapons, made TRW's technological expertise a particularly attractive target. A Stock offer was decided because: * The company was unwilling to increase the level of debt by paying cash and placing more pressure on the cash flow. * The market reaction to the bid was: * As soon as the announcement was made, Northrop shares decreased substantially TRW shares skyrocketed. * After the bid was announced, TRW prices remained high as many successive, higher bids were made. * After the merger was agreed, Northrop shares fell. This was partially due to the merger, but ...

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