Avondale Industries, Inc. (Nasdaq/NM:AVDL) announced today that it had been advised that the Department of Defense has rejected the proposed acquisition of Newport News Shipbuilding (NYSE:NNS) by General Dynamics (NYSE:GD). Albert L. Bossier, Jr., Chairman and Chief Executive Officer of Avondale, said, "We are very pleased with the action of the Department of Defense, which preserves vibrant competition in the shipbuilding industry. We look forward to making rapid progress towards satisfying the remaining conditions of the merger agreement and closing the transaction as soon as the conditions are satisfied." The Newport News-Avondale merger, which previously was cleared by the Department of Defense and the Department of Justice, remains subject to the approval of the shareholders of both companies and other customary closing conditions. It is expected that the shareholder meetings will be held in June. Avondale Industries, Inc., headquartered in metro New Orleans, designs, builds and overhauls both military and commercial vessels.