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LucasVarity holds deal talks
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January 5, 1999: 8:08 a.m. ET
U.K. autoparts company linked to Tenneco and TRW
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LONDON (CNNfn) - Shares in autocomponents manufacturer LucasVarity (LVA) climbed sharply in London Tuesday after a press report linked the group to two suitors.
The shares rose 3.73 percent to 214.5p by midday.
The report by The Wall Street Journal said LucasVarity has been holding separate merger discussions with TRW (TRW) and Tenneco, (TEN) although it is uncertain when and if a deal may emerge, reported the paper.
A spokesman for the company told CNNfn: "We have absolutely no comment to make on the story."
However, he added that the group had earlier announced it would reveal how it plans to implement its strategy at its fourth quarter announcement on March 25. The company wants to concentrate on areas of the automotive and aerospace sectors which it understands well and where there are good growth prospects.
LucasVarity, itself formed out of a transatlantic merger, is in a rapidly consolidating sector. A deal could come within a month, although the talks were fluid and the structure of any merger is unclear.
The company has also been trying to reincorporate in the U.S. but angry shareholders threw out the company's proposal in a vote November.
Both TRW and Tenneco are industrial companies with large automotive businesses and are anxious to sell or spin off these assets. A combination with LucasVarity is only one of several options the two companies are considering as part of this process, according to the Journal. 
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LucasVarity
TRW
Tenneco
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