Hughes Tells of Impending Sale of Irvine Interconnect Division

Hughes Aircraft Co. said Wednesday that it is in final negotiations to sell its Interconnect Systems Division here and expects to finalize the deal in about a month.

“There is a purchase being negotiated,” said David Lefort, a Hughes spokesman. “It is in the hands of the lawyers. There is nothing final yet.”

Lefort would not identify the potential buyer but said Hughes is negotiating with only one company. The Hughes division manufactures electronic connectors, small devices used in the automotive and aerospace businesses.

One source said the buyer is Packard Electric, which, like Hughes, is a subsidiary of General Motors Corp. Packard Electric, based in Warren, Ohio, makes automotive parts such as ignition and battery cables as well as connectors. The company employs more than 64,000 people on six continents.

Patricia Hawkins, spokeswoman for Packard Electric, said, “We don’t discuss any future transactions.”

Hughes’ Interconnect unit employs about 400 people in Irvine. Last year, Hughes announced that it had put the division up for sale.

Lefort said Wednesday that Hughes’ new chief executive, Michael Armstrong, decided to concentrate on core businesses.

“This is one business where we didn’t have a No. 1 position in the market,” Lefort said. “There will be a General Motors board meeting at the end of the month, and it should be addressed then.”