ECHLIN <ECH> BUYS STAKE IN CHAMPION PARTS<CREB>
Champion Parts Rebuilders Inc
said Echlin Inc has bought a 20 pct stake in it by acquiring
600,000 newly issued shares and warrants to buy another 300,000
shares at 9.20 dlrs each, for a total investment of 5,400,000
dlrs.
    The newly issued shares raises Champion's outstanding
shares to 3,113,074.
    There are no voting restrictions on the new shares.
Champion's board will be expanded to include two or three
independent persons suggested by Echlin, it said.
    Champion will use the proceeds to pay down long-term debt,
it said.
    Echlin has agreed to limits on buying additional Champion
shares and its ability to seek control of Champion during the
next seven years, Champion said.
    Echlin will also receive protection against the decline in
price of Champion's stock for seven years. Echlin could receive
a one-time payment, at its option in cash or stock, ranging
from up to one dlrs a share in 1989 to four dlrs a share in
1992 to 1994, to the extent the market price of Champion shares
is less than nine dlrs a share at those times.
 Reuter
