ArvinMeritor plans sale of light vehicle systems business instead of spinoff

By Lisa Kerner

Charlotte, N.C., Nov. 18 - ArvinMeritor, Inc. reiterated on Tuesday that it is now focused on a sale, rather than a spinoff, of its light vehicle systems business in 2009.

"Declining global market and credit conditions are the primary factors that have led us to expand our options for separating the LVS business group, excluding the wheels business located in South America and Mexico," chairman, chief executive officer and president Chip McClure said in a company news release.

In May, ArvinMeritor announced plans to spin off its light vehicle systems business to its shareholders through a pro rata tax-free dividend within 12 months.

On Oct. 31, in addition to exploring strategic alternatives to the spinoff, ArvinMeritor said it was implementing other cost-reduction measures in response to market conditions.

J.P. Morgan is advising ArvinMeritor on the separation of the light vehicle systems business.

ArvinMeritor, located in Troy, Mich., provides a range of integrated systems, modules and components to the motor vehicle industry.

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