TRW Reportedly Weighing Major Acquisition

TRW Inc. may make a multibillion-dollar acquisition for its auto parts or space and defense businesses, an analyst said he was told by the company. “They are looking for massive acquisitions, a multibillion-dollar deal,” said Jackson Blackstock, an analyst with Donaldson, Lufkin & Jenrette. TRW spokesman Jay McCaffrey declined to make a statement. “We don’t comment on market speculation,” he said. Last month, TRW Chief Executive Joseph Gorman said the Cleveland-based company may spin off, sell or otherwise shed some of its businesses to boost the company’s stock price, which fell 3.8% last year. About 60% of TRW’s 1997 revenue of $10.8 billion comes from auto parts, which includes air bags, and the rest is from space and defense products and computer consulting. Richard Henderson, an analyst with the Pershing division of Donaldson, Lufkin & Jenrette, said the company told him it may make a purchase before it sheds any assets. Another possibility is that TRW may acquire an information services company to bulk up its non-defense and commercial services businesses, said Michael Kagan, a portfolio manager with Solomon Bros. Asset Management. TRW shares rose 69 cents to close at $56.25 on the New York Stock Exchange.