Collins & Aikman Revises Its Bid For Textron Trim Business.(Collins & Aikman Corp. revises bid to acquire Textron Inc.)(Brief Ar

Collins & Aikman Corp., a manufacturer of car and truck interior parts, said it had lowered slightly its bid to buy the automobile trim business of Textron Inc. and announced a proposed offering of senior notes to help finance the purchase.

Under the revised terms, Troy, Michigan-based Collins & Aikman's bid for Textron's TAC-Trim division will be valued at about $1.2 billion, down from about $1.3 billion announced on Aug. 7, a company spokesman said. Collins & Aikman said it will now pay Textron about $735 million in cash and assumed debt.

Textron will also retain a 50 percent interest in an Italian joint venture, which Textron will have the right to sell to Collins & Aikman for $23.1 million at a future date.

Textron will also receive preferred shares of Collins & Aikman Products Co. with a face value of $326 million, and 18 million shares of Collins & Aikman common stock, valued at $90 million. Collins & Aikman Products Co. is a unit of the larger holding company.

The sale will reduce Textron's automotive segment to approximately 9 percent of total annualized revenues and supports its goal of creating a simpler, more focused network of strong businesses in attractive industries, according to Textron.

The deal is expected to close by year-end. Providence, Rhode Island-based Textron said that after the deal is closed, it will buy back about $700 million of its own stock and debt. Collins & Aikman said proceeds from a proposed sale of $325 million of 10-year notes will be used both in the TAC-Trim deal and to pay down debt.

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