Federal-Mogul Presses On for LucasVarity

Auto parts maker Federal-Mogul Corp. moved forward with a potential bid for Britain’s LucasVarity, saying it signed a confidentiality agreement and will start examining LucasVarity’s books Monday. The development comes one day after TRW Inc. agreed to buy LucasVarity for $6.6 billion in cash. Southfield, Mich.-based Federal-Mogul had proposed buying LucasVarity for $6.4 billion in cash and stock, but was rebuffed in favor of TRW. A TRW spokesman declined to comment on Federal-Mogul’s move, saying only that TRW was pursuing its planned transaction. LucasVarity could not be reached for comment. Federal-Mogul shares rose 25 cents to close at $59.25; TRW shares fell $2.19 to $48.06; and LucasVarity’s American depositary receipts edged up 13 cents to $48.06. All trade on the New York Stock Exchange.