Echlin Inc

Echlin Inc. agreed to be acquired for $3.4 billion in stock by Dana Corp., a bid that topped a 3-month-old hostile $3-billion offer from SPX Corp. The Echlin-Dana combination would create an auto parts giant with annual sales of $13 billion, joining Echlin's strength in the aftermarket segment with Dana's strong position in the original-equipment sector. SPX, based in Muskegon, Mich., said it is evaluating the situation and will consider its options.

Echlin Inc. agreed to be acquired for $3.4 billion in stock by Dana Corp., a bid that topped a 3-month-old hostile $3-billion offer from SPX Corp. The Echlin-Dana combination would create an auto parts giant with annual sales of $13 billion, joining Echlin's strength in the aftermarket segment with Dana's strong position in the original-equipment sector. SPX, based in Muskegon, Mich., said it is evaluating the situation and will consider its options.

AlliedSignal Automotive and its truck partner, Germany's Knorr-Bremse, said they have agreed to buy the heavy-truck air brake systems business of Echlin Inc. under undisclosed terms. AlliedSignal Automotive, a unit of Morristown, N.J.-based AlliedSignal Inc., said that along with Echlin's truck brake business in the U.S. and Europe, it will also acquire Echlin's U.S.-based commercial vehicle friction materials and aftermarket brake shoe relining operations.

AlliedSignal Automotive and its truck partner, Germany's Knorr-Bremse, said they have agreed to buy the heavy-truck air brake systems business of Echlin Inc. under undisclosed terms. AlliedSignal Automotive, a unit of Morristown, N.J.-based AlliedSignal Inc., said that along with Echlin's truck brake business in the U.S. and Europe, it will also acquire Echlin's U.S.-based commercial vehicle friction materials and aftermarket brake shoe relining operations.

The jobs of an unknown number of Safeway's 11,300 workers in Southern California have been put at risk by the latest financial maneuver of an investment firm that was perhaps overgenerously dubbed a "white knight" last year when it rescued the grocery chain from the clutches of some alleged "greenmailers." The impact of the white knight's rescue effort has been profitable for those who own or manage the company. But, in the long run, consumers may lose.

Dana Corp. said it will close 15 manufacturing plants and 30 distribution centers and cut 3,500 jobs, about 100 more than planned, with its $3.9-billion acquisition of rival Echlin Inc. completed in July. The job cuts make up about 4.4% of the new company's work force. Toledo, Ohio-based Dana will take $170million in pretax charges for the restructuring, which it estimates will result in savings of $575 million in two years. Dana makes equipment for new vehicles; most of Branford, Conn.

Auto parts maker Lear Corp. said it has agreed to buy United Technologies Corp.'s automotive unit for $2.3 billion as it seeks to expand its presence in the instrument panel market. Lear's bid for UT Automotive Inc., a supplier of electronic, motor and interior products for the auto industry, apparently has topped a competing offer from investment firm Blackstone Group. On Monday, the Financial Times of London reported that Blackstone was close to a $2.25-billion deal for the unit.

Reddi Brake Corp. said Tuesday that it suspended operations at its 84 auto parts distribution shops after creditors filed to force its operating subsidiary into bankruptcy proceedings. The Ventura-based company said four unsecured creditors this week filed an involuntary petition against the subsidiary for reorganization under Chapter 11 of the U.S. Bankruptcy Code. Echlin Inc.'s Brake Parts subsidiary, McQuay-North Inc.

SPX Corp. said Monday it will buy General Signal Corp., a struggling industrial company twice its size, in a cash and stock deal valued at $2 billion, or $45 a share. The acquisition of General Signal will move SPX, which makes car parts, specialty tools and vehicle-emissions test equipment, into the general industrial arena. Based in Stamford, Conn., General Signal's product line includes motors for yard and exercise equipment, specialty refrigerators and lighting and wiring products.

A controversial stock just got more so: Trading in shares of El Segundo-based research firm Aura Systems Inc. is being investigated by the Securities and Exchange Commission after the firm's delay in filing year-end financial documents, according to a market source. Aura's shares suddenly tumbled $1.375 to close at $5.375 on the NASDAQ market Friday, a 20% decline in the heaviest trading since late April. Then on Monday, Aura announced that its financial report for the fiscal year ended Feb.

The jobs of an unknown number of Safeway's 11,300 workers in Southern California have been put at risk by the latest financial maneuver of an investment firm that was perhaps overgenerously dubbed a "white knight" last year when it rescued the grocery chain from the clutches of some alleged "greenmailers." The impact of the white knight's rescue effort has been profitable for those who own or manage the company. But, in the long run, consumers may lose.

A union campaign for recognition at a factory in northern Mexico was overwhelmingly defeated Friday after the government allowed the vote to be conducted through an open shop-floor count, despite a pledge to the United States last year to promote the use of secret ballots in labor disputes. Just four out of 501 workers voting at Duro de Rio Bravo, a subsidiary of Kentucky-based Duro Bag Manufacturing Corp.

The retail auto parts industry is being realigned, with the field's top players buying competitors and using public stock sales to expand their shares of the $32-billion market for do-it-yourself mechanics. Not surprisingly, the car capital of the world--Southern California--is at the center of the shuffle. CSK Auto Corp., which runs the Kragen chain, recently gobbled up Trak Auto Corp.'s 82 stores in Southern California for $35 million and reopened them as Kragen outlets.