UPDATE 3-Germany's ZF Friedrichshafen in buyout talks with TRW

Thu Jul 10, 2014 4:33pm EDT
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(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...