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Mogul ends Lucas pursuit
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February 10, 1999: 1:12 p.m. ET
Auto parts maker concedes to TRW's $6.6B offer for British company
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NEW YORK (CNNfn) - Federal-Mogul Corp. put the brakes on its pursuit of British automotive and aerospace parts maker LucasVarity PLC, conceding the company Wednesday to the rival bid of TRW Inc.
The Southfield, Mich., auto parts maker says its review of TRW's $6.6 billion offer for LucasVarity shows that any further pursuit on its part couldn't be justified financially.
"We are continuing to pursue other strategic growth opportunities which will provide superior returns to our investors," Federal-Mogul Chairman Dick Snell said. "We congratulate TRW on the acquisition of a fine company and wish them success."
TRW reached agreement Jan. 28 to acquire LucasVarity. But Federal-Mogul, which also had sought the British company, said it would consider making a higher bid and urged LucasVarity holders to take no immediate action.
TRW's offer is scheduled to expire March 9.
Late last week, TRW said there would be job losses at both companies if the deal goes through. Details on how many jobs would be lost weren't disclosed.
Once the deal is completed, the combined company would be a world leader in vehicle safety systems, which include steering, suspension, brakes, occupant restraints and related electronics.
Federal-Mogul stock was up 2-3/4 to 58-7/8 in afternoon trading. TRW was up ¼ to 50, while LucasVarity was down 1-1/4 to 45-7/8, below the approximately $47.35 a share being offered by TRW in its merger bid. 
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