TRW May Bid for Britain’s LucasVarity

TRW Inc., the largest U.S. air bag maker and a leading provider of space and defense products, may bid for LucasVarity, the world’s second-largest maker of automotive brakes, according to the Sunday Times in London. Cleveland-based TRW would then spin off its auto unit with LucasVarity, which was valued at about $4.6 billion. In November, LucasVarity shareholders voted down a proposal to move the London-based company to Buffalo, N.Y., a move it said would boost its value and lower its costs. A TRW purchase would give the British company the U.S. address it desires and give TRW additional services, making a spinoff of its automotive operations more attractive. TRW said in October that it is considering selling, spinning off or otherwise shedding some of its businesses to boost its stock price. TRW shares fell 56 cents to close at $56.06 Thursday on the New York Stock Exchange.