Deal for Fruehauf Reached: Toronto-based Varity Corp....

Deal for Fruehauf Reached: Toronto-based Varity Corp. announced that it has signed an agreement to acquire Detroit-based Fruehauf Corp. in a merger valued at more than $500 million. Varity has no plans to restructure the automotive and truck component company or lay off any workers, Varity spokesman J. R. Nowling said. Under the merger agreement, Fruehauf will receive $66 million cash, $430 million principal amount in notes guaranteed by Varity and about 55.5 million new Varity common shares. Varity, with 15,300 employees worldwide, manufactures farm and industrial machinery and diesel engines.