California-based Northrup Grumman, which is seeking to become the world's largest defense contractor, has begun a hostile takeover of rival TRW, the Cleveland-based technology and aerospace manufacturer.

Northrup plans to make a direct appeal to company shareholders to accept its offer, which Bloomberg Business News reports is over $11 billion, after TRW rejected a takeover proposal as inadequate. Combining the two firms would create a giant with sales of about $27 billion annually, and push Northrup ahead of its current larger rival Lockheed-Martin. The merger would also give Northrup access to TRW's laser technology used to trace and destroy enemy missiles, technology which may be expanded by the Bush administration.

Some information for this report provided by AFP and Bloomberg.

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