THE controversial former head of car parts group LucasVarity, which employs hundreds at its plants in East Lancashire, will receive a golden handshake of £17 million.

Victor Rice has quit the firm after being offered a less important job by the company's new US owner, TRW, it emerged today.

Under the original terms of the £4 billion takeover by TRW, Mr Rice was set to become vice-chairman of the combined company, in charge of its automotive operations.

That offer is understood to have been withdrawn by TRW chairman Joe Gorman and Mr Rice was offered a lower position as an ordinary director and a consultant.

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