Lucas merger: BBA says no to bid

Article Abstract:

BBA does not plan a bid for Lucas Industries which plans to merge with Varity. Institutional shareholders opposed a bid and BBA moved away from considering an offer with no recommendation from Lucas. BBA could still launch another bid but Lucas was considered too large by some analysts. Institutional investors are more likely to back a bid for a smaller target, though BBA could also grow adequately from its existing activities according to Sandy Morris from NatWest Securities.

Motor Vehicle Parts, Motor Vehicle Parts Manufacturing, Automotive parts, BBA Group PLC

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Bid at your own risk, Varity warns Lucas rivals

Article Abstract:

Varity and Lucas plan to merge, with Victor Rice, Varity's chairman, to head the new company, LucasVarity. Rice argues that no other company would be as suitable for a merger with Lucas though BBA and ITT are rumored to be considering a bid. Lucas produces basic brake equipment and Varity produces anti-lock brake systems. Rice argues that a single culture has to be implemented in both companies and that this should be carried out rapidly.

Auto Brakes, Motor Vehicle Brake System Manufacturing, Automotive brakes, Varity Corp., VAT

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