Once skeptical, Wall Street has taken notice. There is no guarantee that the deal will go forward, however. The Clinton Administration nixed a previous acquisition attempt in 1999 on anti-trust grounds, and the Bush Administration also might be reluctant to create a monopoly builder of nuclear submarines. Ironically, one of the biggest beneficiaries of a merger would be Microsoft maven Bill Gates. His 12 percent position in the company made him the largest single shareholder.
Stock analysts note a curious turn of history.
Newport News Shipbuilding is a maverick, clinging stubbornly to its independence while the rest of the defense industry is consolidating. Ship and aircraft makers whose names are immortalized in the history books have formed linkups to survive. In the past three years, Newport News Ship has fought off merger attempts by both companies. One reason the Yard can afford to go it alone is its unique capability to build nuclear aircraft carriers. Longer than the Empire State Building is tall, these floating airports are among the most complicated pieces of machinery ever built.