UPDATE 1-Lear interested in venture with Collins & Aikman
Tue Aug 16, 2005 10:54 AM ET
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(Adds details from letter)
BOSTON, Aug 16 (Reuters) - Lear Corp. (LEA.N: Quote, Profile, Research) said on Tuesday it was interested in combining its interior components business with a related businesses of bankrupt Collins & Aikman Corp. (CKCRQ.PK: Quote, Profile, Research).
Auto interiors supplier Lear delivered a letter of interest to Frank Macher, chief executive at Collins & Aikman, which called creating a joint venture an attractive alternative, the company said in a statement.
"Lear is as well positioned as any other potential bidder to raise third-party equity financing if necessary to complete a transaction," Lear Chief Financial Officer David Wajsgras wrote in the letter.
The company, which makes seats, door panels and other vehicle components, asked for access to information necessary to make a proposal.
Collins & Aikman, which filed for Chapter 11 protection from creditors in May only days after it warned of a significant liquidity crunch, has already received a takeover offer from privately held Plastech Engineered Products Inc.
Media reports have put the Plastech offer at around $1 billion for a company that has annual revenue approaching $4 billion.
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