Reuters Reports On TRW Automotive Acquisition Rumor; Tigress Financial Partners Comments

At 12:43 p.m. ET on Wednesday, Reuters published a report citing sources familiar with the matter as saying that German based ZF Friedrichshafen AG is in advanced talks to acquire U.S. based

for $12 billion or about $105 per share. The Reuters' source said deal would create an "automotive supply powerhouse" and, at that price, would represent one of the most expensive takeovers in the auto parts sectors. Following the Reuters' article, shares of TRW dipped ~2.3 percent to $101.86 before stabilizing around the $102.15 mark. When asked about the discount relative to the rumored bid, Tigress Financial Partners analyst, Ivan Feinseth said he believes the final offer will be closer to the $115 level. He further said he was "surprised" that another firm has not surfaced with an offer, given TRW's position in the sector. With the Reuters' source saying the parties are looking to reach an agreement in the coming weeks, there is likely to be more news emerging on the potential acquisition.