LOS ANGELES (AP) -- Northrop Grumman says its board has approved the spin-off of its struggling shipbuilding business to stockholders.
The deal announced Tuesday has been under consideration since last July.
Under terms approved by the board, Northrop Grumman stockholders will receive one share of the shipping business, Huntington Ingalls Industries Inc., for every six shares of Northrop Grumman stock they hold on March 30.
Shares of the shipbuilding business will begin trading under the symbol "HII" the next day.
The unit has struggled as it lost defense contracts and, with other defense companies and weapons buyers, was under pressure from the Pentagon to cut costs. That led Northrop to cut jobs and plan the closure of its main Louisiana shipyard.
The deal announced Tuesday has been under consideration since last July.
Under terms approved by the board, Northrop Grumman stockholders will receive one share of the shipping business, Huntington Ingalls Industries Inc., for every six shares of Northrop Grumman stock they hold on March 30.
Shares of the shipbuilding business will begin trading under the symbol "HII" the next day.
The unit has struggled as it lost defense contracts and, with other defense companies and weapons buyers, was under pressure from the Pentagon to cut costs. That led Northrop to cut jobs and plan the closure of its main Louisiana shipyard.