Northrop to buy Grumman stock

Trustees of the Grumman Corp. employee stock fund, which controls a third of the company, have decided to sell the stock to Northrop as part of its $2.17 billion takeover offer.

With the largest single block of stock, Grumman employees figure prominently in the takeover plan. Northrop's plan to rename the company Northrop Grumman Corp. was seen as an effort to win the hearts of Grumman employees.

The trustees, three Grumman executives, said the stock would be transferred Friday, the deadline for the Northrop offer of $62 per share. The trustees said in a letter to employee investors, released yesterday, that they would change their mind if a higher offer came along this week.