TRW Files With SEC For Spin Off Of Auto Unit

Autoparts Report,  June 7, 2002  

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TRW Inc. said that it will spin off its subsidiary, TRW Automotive Inc. The spin-off plan would give TRW shareholders shares in both the automotive business and in TRW's remaining systems, space and electronics businesses.

The move comes as TRW is the subject of a more than $6 billion hostile takeover by Northrop Grumman that was extended again at the end of last month. The offer values TRW at $53 a share. The company said the spinoff should be completed by the end of this year.

Philip A. Odeen, chairman of TRW said, "We are committed to realizing value for TRW shareholders. TRW is currently pursuing two parallel paths that we believe will deliver value to our shareholders. First is our shareholder value enhancement plan, which includes the sale of our aeronautical systems business to reduce debt followed by the spin-off of the automotive business."

"Second, we continue to make good progress on the exploration of other strategic alternatives. We are in the process of sharing confidential information with several interested parties and are quite pleased with the level of interest expressed in TRW. ***** While right now we continue to pursue both options, ultimately TRW's Board of Directors will choose the course of action it believes is in the best interest of TRW shareholders."

COPYRIGHT 2002 Ron DeMarines
COPYRIGHT 2008 Gale, Cengage Learning