CLEVELAND (March 18, 2002)—TRW Inc. will spin off its auto parts business in six to nine months. The company made that announcement after it rejected for the second time a $6 billion takeover offer from defense contractor Northrop Grunman Corp., according to Automotive News, a sister publication of Tire Business.
Potential buyers include Delphi Automotive Systems Corp. and Visteon Corp.—the industry's two largest suppliers—along with Continental A.G. of Germany and Lear Corp., the magazine said.
When it announced its bid for TRW, Northrop said it would spin off the auto parts business. TRW said it will use the money from the sale of the auto parts business to reduce its debt of $5 billion.