Lear Corp.'s five-year credit default swaps tightened 50-60 basis points to 545-555 after CEO Bob Rossiter said he was confident a solution would be found for the company's North American interiors business by year-end. He said Lear's preferred option is to form a joint venture with billionaire investor Wilbur Ross, although details of the plan still have to be ironed out. Rossiter made the comments at the Paris Auto Show last week. Lear's 8.11% '09 bonds rose two points to 96-97.
Lear has also signed an agreement to contribute its European interiors business to Ross' International Automotive Components Group, a business he formed in 2005. The company originated with acquisitions in the U.S., but is now centered in Europe since Ross' acquisition of Collins & Aikman's European interiors business in March. Franklin Mutual Advisers is also an investor in the venture. A Lear spokeswoman said the deal is expected to close in the third quarter. Ross was traveling and could not be reached by press time.
In July, AMVESCAP acquired WL Ross & Co., which, upon completion expected soon INVESCO Private Capital will be combined into WL Ross & Co. and managed by Ross. WL Ross & Co. was formed in April 2000.