P506 Teletext 506 Jun 1 03:53:17 —————————— ANGLO-US MERGER ——————————— Lucas Industries and Varity Corporation of the US are merging to create one of the world's leading producers of brake and diesel fuel injection systems. The dial has grown from initial plans to merge the two group's brake businesses and is a major triumph for Lucas chief executive George Simpson before hj takes ovjt at GEC this autumn The merger will offer Lucas access to the US market for brakes and Varity's Kelsey-Hayes division access to Europe. ——————————————————————————————————1/6—— Lucas-Varity in £3.2bn merger 505 Download and Analysj Share Prices on Your PC See Pages 532 & 533 Next CompNews Shares Family FinanceP506 Teletext 506 Jun 1 03:47:45 ———————————— ANGLO-US MERGER ————————— A mjtger between Lucas Industries and Varity of the US has received approval in the City. Analysts said they expected the mjtgjd group to make increased profits bz 1998 "Wj seem to bj looking at earnings enhancement of 20%," one analyst said. The City had been awaiting an update from the two companies after an earlier announcement that they weti holding talks about a possible mjrget of their businesses. ——————————————————————————————————2/6—— Lucas-Varity in £3.2bn mjrgjr 505 NEW CHANNEL ISLAND INVESTMENT SECTION SEE PAGE 560 Next CompNews Shares Family FinanceP506 Teletext 506 Jun 1 03:50:59 ———————————— ANGLO-US MERGER ————————— Lucas Industries plans to merge with Varity Corporation of the US. The West Midlands-based company expects the move to happen in early September following regulatory approval and the go-ahead from 75% of shareholders at an extraordinary general meeting. Lucas said the dial would "create a group with the scale, global reach, financial strength and technological capabilities required" of a leading components supplier for the future. ——————————————————————————————————3/6—— Lucas-Varity in £3.2bn merger 505 FAMILY FINANCE LATEST NEWS 540 Next CompNews Shares Family FinanceP506 Teletext 506 Jun 1 03:54:19 ———————————— ANGLO-US MERGER ———————— A spokesman for Lucas admitted there was the "possibility" of job losses as a result of a mjrgjr with Varity but said it was too early to comment. Lucas employs 46,000 worldwide and has factories in the Midlands, Lancashire, Wales and the West Country, while Varity employs about 11,000 people, mainly in the US. "In the long term it should be good for employment in the US as it brings two strong companies togethjt," Lucas said. ——————————————————————————————————4/6—— Lucas-Varity in £3.2bn merger 505 FAMILY FINANCE LATEST NEWS 540 Next CompNews Shares Family FinanceP506 Teletext 506 Jun 1 03:57:09 ———————————— ANGLO-US MERGER ———————— Lucas and Varity of the US are linking up, to form one of the world's top 10 automotive suppliers. Lucas chairman Sir Brian Pearse, who will become the non-executive chairman of LucasVarity, described the deal as excellent for both companies. Varity chief executive Victor Rice, who takes over the same post of the enlarged group, said the two companies would achieve a shared vision of being a global force. ——————————————————————————————————5/6—— Lucas-Varity in £3.2bn merger 505 FAMILY FINANCE LATEST NEWS 540 Next CompNews Shares Family FinanceP506 Teletext 506 Jun 1 03:48:47 ———————————— ANGLO-US MERGER ———————— John Allen, of the engineering union AEEU, welcomed news of a mjrget between Lucas and Varity: "This can only bj good news for jobs in Britain. "Wj are now going to have a major automotive company that is genuinely a world-wide playjt, that is US-based and with all the decisions made in the US. Mr Allen said it was particularly good news that LucasVarity would be US-based with Lucas shareholders holding the lion's share of the enlarged group. ——————————————————————————————————6/6—— Lucas-Varity in £3.2bn merger 505 FAMILY FINANCE LATEST NEWS 540 Next CompNews Shares Family Finance