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Mumbai:
Tata AutoComp Systems (Taco) and French auto parts maker
Valeo are believed to be in discussions to acquire a stake
in NYSE-listed ailing automotive supplier Visteon Corporation,
which was spun off from Ford Motor Company in 2005. The
acquisition is expected to cost $1.5-2 billion.
For
Taco, a 12-year-old company that is an original equipment
supplier to major domestic and multinational car-makers,
the acquisition has a strategic fit with its operations.
The
company has appointed a merchant banker and is awaiting
clearance from Visteon to start due diligence. Valeo is
also exploring all options, including a leveraged buyout
of Visteon.
Visteon makes
electronic items, powertrain controls, engine induction,
chassis and lighting for vehicle manufacturers. At present,
it employs around 45,000 people in 26 countries, including
the US, China and Germany.
Visteon
posted a net loss of $153 million on sales of $2.93 billion
in its first quarter ended March 31, 2007. It had a debt
of $2.2 billion on March 31, 2007, which remained unchanged
from the end of the previous financial year.
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