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Way is clear for TRW bid

18th February 1999, Page 18
18th February 1999
Page 18
Page 18, 18th February 1999 — Way is clear for TRW bid
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The long-running

Lucas Varity takeover saga seems to have ended with Federal-Mogul's withdrawal from the race. As expected, the American car components group decided against increasing its last offer. This leaves the way

clear for TRW, supplier of steering systems, to succeed with its £4bn bid.

However, LueasVarity chief executive Victor Rice has attracted severe criticism for the decision to close the Lucas SEI plant at Ystradgynlais in South Wales. The factory is to close with the loss of 750 jobs. Its work is likely to be moved to eastern Europe where labour costs are much lower The closure announcement coincided with the disclosure that Rice stands to receive a £17m payoff on the sale.