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.
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