Lulu Is Home Now

Hughes and heads for the 21st century

General Motors Chairman Roger Smith was beaming with his lights on high last week as he celebrated the biggest and boldest acquisition in his company's history. Two years ago, Smith revealed that the world's largest automaker (1984 sales: $83.9 billion) was courting a mysterious "lulu" of a company, one that would help transform GM from something of a stodgy powerhouse into a high-tech star. Now the Detroit giant was driving off with its prize. After a contest in which it outbid Ford and Boeing, GM agreed to acquire Hughes Aircraft, a major defense contractor (1984 sales: $5.8 billion), for more than...

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