Federal-Mogul May Bid for LucasVarity

Federal-Mogul Corp., the world’s largest maker of engine seals, is ready to offer $5.96 billion for LucasVarity, the No. 2 manufacturer of car brakes, London’s Sunday Times reported. LucasVarity Chief Executive Victor Rice, who reportedly would prefer to link up with TRW Inc.’s automotive unit, may try to fight an offer by finding other bidders, it said. A Federal-Mogul spokeswoman declined to comment on the report. She said, however, “there are several acquisition targets that we are reviewing.” A spokesman for London-based LucasVarity declined comment. The auto-parts industry has been consolidating as suppliers try to cut costs to offset pressure from car makers that want to reduce prices and deliver whole parts systems. Southfield, Mich.-based Fed Mogul has bought seven businesses in the last year, including the car-parts unit of Cooper Industries Inc.(Bloomberg News)