DATE=3/23/98
TYPE=CORRESPONDENT REPORT
NUMBER=2-228596
TITLE=DEFENSE MERGER (L)
BYLINE=JIM RANDLE
DATELINE=PENTAGON
CONTENT=
VOICED AT:
INTRO: THE U-S JUSTICE AND DEFENSE DEPARTMENTS ARE ASKING A COURT
TO STOP A PLAN BY TWO OF THE BIGGEST WEAPONS BUILDERS IN THE
UNITED STATES TO COMBINE FORCES. V-O-A'S JIM RANDLE REPORTS FROM
THE PENTAGON, OFFICIALS SAY THE MERGER WOULD MAKE THE HUGE
DEFENSE MARKET LESS COMPETITIVE, AND WEAPONS MORE EXPENSIVE.
TEXT: IT WOULD BE A MASSIVE DEAL, A 12 BILLION DOLLAR ACQUISITION
OF NORTHROP GRUMMAN BY LOCKHEED MARTIN.
THESE ARE ALREADY TWO OF THE NATION'S FOUR LARGEST WEAPONS
MAKERS, WHICH WOULD BECOME ONE, EVEN LARGER COMPANY. ATTORNEY
GENERAL JANET RENO SAYS SUCH MARKET CONCENTRATION WOULD HURT THE
COUNTRY.
/// RENO ACT ///
IF THIS MERGER WERE TO GO FORWARD, AMERICA COULD FACE
HIGHER PRICES AND LOWER QUALITY IN ADVANCED TACTICAL AND
STRATEGIC AIRCRAFT, AIRBORNE EARLY WARNING RADAR
SYSTEMS, SONAR SYSTEMS, AND SEVERAL TYPES OF COUNTER-
MEASURE SYSTEMS THAT SAVE OUR PILOTS FROM BEING SHOT
DOWN WHEN THEY ARE FLYING IN HOSTILE SKIES.
/// END ACT ///
LOCKHEED CURRENTLY SELLS ABOUT ONE FOURTH OF ALL MILITARY
HARDWARE THE PENTAGON BUYS.
UP TO NOW, PENTAGON OFFICIALS ENCOURAGED SMALLER WEAPONS MAKERS
TO MERGE AND STREAMLINE. THE IDEA WAS TO KEEP WEAPONS
MANUFACTURERS ALIVE AND THEIR MOST TALENTED ENGINEERS, SCIENTISTS
AND WORKERS EMPLOYED AFTER THE END OF THE COLD WAR SHRANK DEMAND
FOR AIR CRAFT, SHIPS AND ELECTRONICS.
BUT AT AN UNUSUAL JOINT NEWS CONFERENCE, SECRETARY OF DEFENSE
WILLIAM COHEN AND U-S ATTORNEY GENERAL JANET RENO SAID
CONSOLIDATION HAS GONE FAR ENOUGH. (SIGNED).
NEB/JR/WDC/KL
23-Mar-98 3:54 PM EST (2054 UTC)
NNNN
Source: Voice of America
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