Ohio-based defence manufacturer TRW's shareholders have voted to reject a $6.7bn (�4.58bn) hostile bid from rival Northrop Grumman.

"I would characterize (the vote) as a clear cut victory," said chairman Philip Odeen.

"TRW shareholders have spoken and their message is clear - they support the TRW Board and the actions it is taking to enhance shareholder value."

TRW's shareholders rejected Northrop Grumman's attempt to buy a 20% stake in the company as a first step towards an all-out takeover.

Northrop Grumman said it was analysing the results of the ballot.

End of the road

Northrop Grumman's long-running battle to create the second largest defence contractor in the US may have reached the end of the road.

Under Ohio law, hostile bids are met with a series of legal obstacles erected in order to keep companies based in the Mid-western state.

Hostile bids are automatically halted unless shareholders agree to drop some of these legal defences.

Northrop Grumman has challenged Ohio's defensive laws by filing a federal lawsuit.

Friendly merger

It appears that the most likely way forward for Northrop Grumman would be an agreed takeover or merger.

That would require the participation of TRW's board, which has already twice rejected its approaches.

"If Northrop wishes to proceed, I am confident that we can reach a mutually acceptable agreement," said Mr Odeen.

Blocked

In 1998 Northrop tried to merge with its rival Lockheed Martin, but the deal was blocked by US anti-trust regulators.

The firm generates sales of military and aerospace equipment worth about $18bn a year.

Northrop's headquarter is in Los Angeles, and the firm has worldwide operations in 25 countries.

TRW, a specialist in aerospace products and services, information systems and automotive markets, has annual sales of $16.4bn.