Tatas, Valeo in talks to acquire stake in Visteon
21 May 2007
For Taco, a 12-year-old company that is an original equipment supplier to major domestic and multinational car-makers, the acquisition has a strategic fit with its operations.
The company has appointed a merchant banker and is awaiting clearance from Visteon to start due diligence. Valeo is also exploring all options, including a leveraged buyout of Visteon.
Visteon makes electronic items, powertrain controls, engine induction, chassis and lighting for vehicle manufacturers. At present, it employs around 45,000 people in 26 countries, including the US, China and Germany.
Visteon
posted a net loss of $153 million on sales of $2.93 billion
in its first quarter ended March 31, 2007. It had a debt
of $2.2 billion on March 31, 2007, which remained unchanged
from the end of the previous financial year.
