Northrop’s directors adopted a defensive strategy against...

Northrop’s directors adopted a defensive strategy against possible takeover attempts, declaring a dividend distribution of one common stock purchase right on each outstanding share of common stock. The distribution to the holders of the company’s approximately 47 million common shares will be made Oct. 5. In the event of an unfriendly takeover attempt, Northrop shareholders would be able to buy stock at a 50% discount. The adoption of what is commonly called a “poison pill” defense was not motivated by any acquisition attempt, according to a company press release, “and the board is not aware of any effort to acquire control of Northrop.”