Date:02/11/2006 URL: http://www.thehindubusinessline.com/2006/11/02/stories/2006110201100400.htm

Back US co not buying stake, says India Pistons

Our Bureau

Chennai , Nov. 1

India Pistons Ltd has denied reports of Federal Mogul Corporation of the US acquiring a majority stake in the company.

A press statement from the Amalgamations Group Company says that a section of the press has recently carried reports that Federal Mogul Corporation of the US is close to acquiring a majority stake in India Pistons Ltd, a leading auto components manufacturer. The news item is unfounded, false and misleading.

India Pistons is in the front ranks of the auto components industry; it is an approved and major supplier to almost all the vehicles and tractor manufacturers in the country, has a significant presence in the after market with an extensive range of pistons, rings and allied engine components and its exports are sizable. The company enjoys a pioneer status being the first to commence manufacture of engine components in the country.

The company, a member of the Amalgamations Group, was promoted by Simpson & Co in 1949. Simpson & Co is the majority shareholder with 70 per cent holdings and Federal Mogul holds the remaining 30 per cent.

India Pistons wishes to state categorically that there is no proposal or ongoing negotiation to change this share holding pattern to enable Federal Mogul to increase its holdings in the company, the statement said.