Auto Service World
News   June 5, 2002   by Auto Service World

TRW Makes Move to Spin Off Automotive Division

TRW Inc. has taken steps to prepare for the separation of its automotive division, TRW Automotive Inc., from the parent company.
TRW Automotive Inc. filed with the U.S. Securities and Exchange Commission in connection with the possible tax-free spin-off of TRW’s automotive business. The spin-off plan contemplates that TRW shareholders would own publicly-traded shares in both the automotive business and in TRW’s remaining systems, space and electronics businesses.
TRW has come under scrutiny over the recent past for what it called a short-term indebtedness, which attracted a hostile taker bid by Grumman. That bid was rebuffed by shareholders earlier this year as being inadequate.
If pursued, the spin-off of the automotive business would be expected to occur by the end of this year.
Philip A. Odeen, chairman of TRW said, “We are committed to realizing value for TRW shareholders. TRW is currently pursuing two parallel paths that we believe will deliver value to our shareholders.
"First is our shareholder value enhancement plan, which includes the sale of our Aeronautical Systems business to reduce debt followed by the spin-off of the automotive business. Today’s filing marks another milestone in the execution of our value enhancement plan. Second, we continue to make good progress on the exploration of other strategic alternatives. We are in the process of sharing confidential information with several interested parties and are quite pleased with the level of interest expressed in TRW. While right now we continue to pursue both options, ultimately TRW’s board of directors will choose the course of action it believes is in the best interest of TRW shareholders.”
TRW, with $16 billion in annual sales, provides advanced-technology products and services for the aerospace, systems and automotive markets.

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