NEW YORK/FRANKFURT, July 30 Germany's ZF
Friedrichshafen AG is in advanced talks to acquire U.S.-based
TRW Automotive Holdings Corp for nearly $12 billion, in
a deal that would create an automotive supply powerhouse, people
familiar with the matter said.
ZF, which is lining up roughly 10 billion euros
($13.4 billion) in debt financing, is in talks to pay around
$105 per TRW share, the people said, just above its current
stock price and valuing the company at close to $12 billion
based on shares outstanding.
A deal at that price level would represent a multiple of
about 7.5 times TRW's estimated earnings before interest, tax,
depreciation and amortization in 2014, making it one of the most
expensive takeovers in the auto parts sector, the people said on
Discussions are continuing and the two sides have yet to
negotiate a final price and other terms, the people said. The
companies are hoping to reach an agreement in a matter of weeks
but there is no guarantee one will be struck, the people added.
All the people asked not to be named because the discussions
are private. Representatives for ZF and TRW declined to comment.
(Reporting by Soyoung Kim in New York, Arno Schuetze and Edward
Taylor in Frankfurt; Editing by Tom Brown)