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Titan Shareholders OK Sale to Lockheed-Martin
By Leon Worden
Signal City Editor
Thursday, June 10, 2004
major defense contractor could soon inherit the problems of an intelligence firm that is tied to the widening Iraqi prisoner abuse scandal.
Titan Corp. shareholders Monday approved the sale of their company to Lockheed Martin Corp. for $1.66 billion in cash and the assumption of $530 million in debt.
Lockheed has twice delayed the buyout and cut its initial cash offer amid a scandal but not the one involving Titan contractors at Abu Ghraib prison. Rather, Lockheed grew squeamish when the Justice Department decided to investigate allegations of bribes to foreign officials.
Lockheed may delay the buyout a third time, and it can back out all together if the Justice Department hasn't completed its criminal probe of Titan by June 25.
On Friday the SEC notified Titan of its intent to file a civil lawsuit for securities violations related to the payments to foreign countries, a Titan statement said.
Gene Ray, Titan's chairman and chief executive, said Monday that he will remain at the helm if Titan isn't sold. If it is, he'll retire.
Last month the Calvert family of mutual funds announced plans to rid its portfolio of Titan and another intelligence firm with employees at Abu Ghraib, CACI International Inc. A fairly small fund family in Maryland known for maintaining socially responsible portfolios, Calvert determined that Titan and CACI no longer meet its criteria for "human rights."
Titan is based in San Diego and trades on the New York Stock Exchange. With 12,000 employees and $2 billion in annual sales, it provides information and communication services to intelligence and other government agencies.
Signal staff writer Judy O'Rourke and The Associated Press contributed to this story.
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