Magna Agrees to Create Separate Unit

Magna International Inc., Canada’s largest auto parts maker, agreed to place its real estate--including the Santa Anita racetrack in Arcadia--and entertainment businesses into a new unit with separate management to focus on its main automotive business. The plan, approved by Magna’s board, was proposed to ease investor concern about diverting assets from the auto parts business into ventures such as racetracks, theme parks and airlines. Investors have been wary of Chairman and founder Frank Stronach’s investment strategy, including last year’s $126-million purchase of the Santa Anita track, analysts said. Magna agreed it wouldn’t divert money from its auto parts business into other ventures for seven years. The new unit, to be called Ventures, will hold all non-auto assets. If approved by shareholders, Ventures will develop real estate for commercial and recreational purposes. Magna shares fell 13 cents to close at $60.38 on the New York Stock Exchange.