UPDATE 3-Germany's ZF Friedrichshafen in buyout talks with TRW
(Adds ZF confirmation, analyst comment, updates share price)
By Mridhula Raghavan
July 10 (Reuters) - Germany's ZF Friedrichshafen said it was in early-stage buyout talks with U.S. auto parts supplier TRW Automotive Holdings Corp.
TRW confirmed that it had received a takeover approach, but did not name the suitor.
The companies did not disclose any financial details of the deal, but a Bloomberg report said ZF valued TRW at $11 billion to $12 billion.(bloom.bg/U5p7CG)
ZF's valuation for the $10-billion U.S. supplier is low, an analyst from Tigress Financial Partners said, adding that Magna International Inc could come up with a counter offer.
"We feel the company is worth a lot more and would be a strategic acquisition to a number of other component manufacturers," Ivan Feinseth from Tigress Financial said.
Feinseth values TRW at between $120 and $135 per share. At the higher end of this range, the company is valued at nearly $15 billion, based on 110.76 million shares outstanding.
TRW shares rose as much as 11 percent to a life high of $101.75 in early afternoon trading on the New York Stock Exchange, giving the company a market cap of about $11 billion. Continued...