Posted on: Friday, June 25, 2004

$1.66B Lockheed, Titan deal dissolves

Associated Press

SAN DIEGO — Lockheed Martin Corp. effectively scuttled plans to buy Titan Corp. for $1.66 billion, saying yesterday it refused to wait for the outcome of a federal probe into alleged overseas bribery.

Titan said it didn't expect the Justice Department to finish its probe by today, the deadline the two companies set for Titan to resolve the investigation. 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 authorize another extension. We declined to do so."

The deal ran into trouble shortly after Lockheed, based in Bethesda, Md., said in September that it would buy Titan for a purchase price that included cash and stock. In February, the companies said the Justice Department and Securities and Exchange Commission were investigating Titan's overseas payments.

Titan, based in San Diego, has said settlement discussions with the Justice Department involved Titan's businesses in Benin and Saudi Arabia, refusing to elaborate.

Gene Ray, Titan's chairman and chief executive, said he would stay on the job if the deal collapses. He declined to discuss the federal probes.