After study, Delphi's steering unit loses value.(Suppliers)(Platinum Equity L.L.C. to acquire Delphi Corp.'s division)

Automotive News, May, 2007 by Barkholz, David

Byline: David Barkholz

The potential sale price for Delphi Steering has fallen since private-equity fund Platinum Equity LLC agreed to buy the division Jan. 31.

Delphi Corp. reported last week in its first-quarter report that it cut the division's asset value by $152 million, or 28.6 percent, after due diligence by Los Angeles-based Platinum. The new value of the assets is $380 million.

"Based on the ongoing sale and labor negotiations during March 2007, previous estimates of sale proceeds were reduced,'' Delphi said in its report.

Delphi Steering, which had 2006 sales of about $2.6 billion, is the largest business being divested by Delphi.

The division doesn't fit with Delphi's strategy to emerge from Chapter 11...

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