German giant launches takeover bid for Pacifica

BOSCH has launched a $495 million takeover bid for the Australian components manufacturer Pacifica Group with a $1.92 share offer.

However, the $1.92 bid is significantly below a $2.40 offer made, and rejected by Pacific, back in July.

The bid could not have come at a worse time for Pacifica, which is battling falling car production in its key local and United States markets.

It is also facing rising costs to keep collapsed component makers Huon and Ajax in production.

Pacifica's PBR division makes disc brake callipers, parking brakes and other components for the major car-makers and is a big supplier to Bosch in the US, where it is a supplier of automotive brake systems to General Motors and Ford.

However, Bosch has warned that it may not renew commercial arrangements with Pacifica if the takeover is rejected.