THE VIRGINIAN-PILOT   
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Saturday, February 10, 1996            TAG: 9602100368
SECTION: BUSINESS                 PAGE: D1   EDITION: FINAL  
SOURCE: BY CHRISTOPHER DINSMORE, STAFF WRITER
                                             LENGTH: Medium:   64 lines

CORRECTION/CLARIFICATION: ***************************************************************** Litton Industries Inc. owns Ingalls Shipbuilding Inc., a Mississippi shipyard. The shipyard was incorrectly named in an article Saturday about Litton buying Sperry Marine Inc., a former subsidiary of Newport News Shipbuilding. Ingalls and Newport News Shipbuilding are in a joint venture created to win orders for Navy amphibious warships. Correction published Tuesday, February 13, 1996 on page D2. ***************************************************************** LITTON INDUSTRIES INC. IS BUYING SPERRY MARINE THE CALIFORNIA COMPANY HAS BEEN EXPANDING IN THE DEFENSE INDUSTRY

Litton Industries Inc. is buying Sperry Marine Inc. of Charlottesville for about $160 million.

Sperry, a former subsidiary of Newport News Shipbuilding, makes navigation and guidance systems for the Navy and the maritime industry. Sperry operates a small service office in Virginia Beach and employs 130 technicians working at Newport News Shipbuilding.

Litton announced the deal late Thursday.

The purchase is doubly interesting because Litton is rumored to be a possible buyer for Newport News Shipbuilding.

The Peninsula shipyard's parent company, Tenneco Inc., is considering selling the shipbuilder, known for the aircraft carriers and submarines it makes for the Navy.

Woodland Hills, Calif.-based Litton owns Avondale Industries Inc., which builds destroyers and cruisers for the Navy.

Since selling off its non-defense-related business recently, Litton has publicly said its strategy is to acquire companies that fit with its other businesses.

Avondale and Newport News Shipbuilding are already cooperating. They plan to bid jointly for the next generation of Navy amphibious warships.

The Navy will begin soliciting bids later this year for the 12-ship program, worth an estimated $5 billion over the next 15 years.

A Litton spokesman was reticent about the defense contractor's interest in Newport News Shipbuilding, saying only that the company has made several acquisitions in the past year and has several others in the works.

To acquire Sperry, Litton is assuming its outstanding debt of $52 million, retiring its $2 million of preferred stock and issuing 2 million shares of Litton stock to J.F. Lehman & Co., the investment partnership managed by John Lehman, the secretary of the Navy under Ronald Reagan.

J.F. Lehman & Co. bought Sperry Marine in late 1993 from Newport News Shipbuilding for an undisclosed price. Sperry had 1995 revenues of $145 million, up from $120 million in 1992.

Sperry hired retiring Adm. Paul David Miller as its president in October. Miller had been commander-in-chief of the U.S. Atlantic Command and NATO's Supreme Allied Commander Atlantic.

Sperry employs 750 people in Virginia, mostly in Charlottesville, and 250 more worldwide. The deal is expected to close by April 1. by CNB