SAN DIEGO: Lockheed Martin Corp effectively scuttled plans to buy Titan Corp for US$$1.66bil, saying it refused to wait for the outcome of a federal probe into alleged overseas bribery.
Titan said it did not expect the Justice Department to finish its investigation by yesterday, the deadline the two companies set for Titan to resolve the probe before a possible defence industry merger. Titan requested an extension but Lockheed refused.
“We extended the deadline for Titan to satisfy the closing conditions twice previously,'' said Lockheed spokesman Tom Jurkowsky. “Titan asked us to amend the agreement again to authorise another extension. We declined to do so.''
The deal ran into trouble shortly after Lockheed said in September that it would buy Titan for US$$1.8bil, or US$22 a share, in cash and stock. In February, the companies said the Justice Department and Securities and Exchange Commission were investigating Titan's overseas payments.
Titan has said that settlement discussions with the Justice Department involved the company's businesses in Benin and Saudi Arabia. It did not elaborate. – AP
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