Federal-Mogul Drops Bid, Leaving LucasVarity to TRW

Auto parts maker Federal-Mogul Corp. said Wednesday that it will not pursue a rival bid for LucasVarity, clearing the way for TRW Inc. to conclude the agreement it reached to acquire the British auto parts and aerospace company for $6.6 billion.

“We remain committed to completing the transaction within the announced timetable,” TRW Chief Executive Joseph Gorman said. The deal, which comes amid widespread industry consolidation, calls for TRW to pay $47.35 per American depositary receipt of LucasVarity.

Southfield, Mich.-based Federal-Mogul made its decision after examining LucasVarity’s financial books for three days in an effort to determine whether it should top TRW’s cash bid. Federal-Mogul made a cash and stock offer of $6.4 billion. Last month, LucasVarity opted instead for the all-cash bid by Cleveland-based TRW.

*

Air Bag Trial: DaimlerChrysler moved to overturn or reduce a New York jury’s verdict finding the auto maker negligent in the death of a 5-year-old boy who was killed by an air bag. Attorneys asked a U.S. district judge in Manhattan to overturn the jury’s $1.5-million award to Michael Liz Crespo’s family. The boy was killed when a rented Dodge Caravan driven by his father collided head-on with another vehicle.

*

More Auto Mergers? Ford Motor Co. Chief Executive Jac Nasser squelched speculation that Ford is close to buying BMW but made it clear the No. 2 auto maker may still be interested in adding the premium German car firm to its portfolio of brands. Nasser said Dearborn, Mich.-based Ford respects BMW’s desire to remain independent.