DELPHI CORP. SHARES, BONDS FALL AS HOPES OF GM BAILOUT FADE

Shares and bonds of

the largest U.S. auto parts maker, fell to record lows yestgerday amid concerns the company won’t get financial aid from former parent

and may have to file for bankruptcy. The stock fell US35¢, or 10%, to US$ 3.02 in New York Stock Exchange composite trading. Troy, Mich.- based Delphi’s shares are down 53% since Aug. 19, and have fallen 22% this week. Delphi stock climbed in recent months as investors speculated GM would bail out the company in the same way that Ford Motor Co. agreed to help its former parts unit Visteon Corp. cut costs and shed workers by taking over some Visteon plants. Delphi stock almost doubled through mid- August, then fell when analysts began to say Delphi may not get similar aid. “ There is a growing fear among investors that the company may file for bankruptcy,” said Joe Amaturo, an analyst with Calyon Securities Inc. in New York. Delphi, which was spun off from GM in 1999, posted a US$741-million loss in the first half. Chief executive Steve Miller, who joined the company in July, has threatened to take the company’s U.S operations into bankruptcy if GM doesn’t extend aid and the United Auto Workers union doesn’t agree to wage and benefit cuts. Delphi’s 6.55% note due in 2006 fell about US2¢ on the dollar to US70.5¢ and yielded 62.8% yesterday on Trace, the bond price reporting system of the NASD. The note was the most heavily traded among institutional investors, with 144 trades over US$1-million at 4 p.m. in New York. Four of the five most heavily traded bonds among institutional traders were Delphi issues. Bloomberg News