Auto-parts supplier Federal-Mogul Corp. (FDML) will not make a last-minute bid to buy the assets of bankrupt peer Delphi Corp. (DPHIQ), but it appears likely Delphi's debtor-in-possession lenders will, according to a person familiar with the matter.

A media report Tuesday evening said Federal-Mogul was considering making a bid before Friday's deadline, in hopes of topping a bid from Parnassus Holdings II LLC, an affiliate of private equity firm Platinum Equity. Federal-Mogul had discussions with Delphi in the past about a bid, but never made one. Federal-Mogul spokespeople didn't promptly return a call seeking comment.

Delphi is set to consider its bids over the weekend, announce qualified bidders on Monday, then hold an auction for the assets next Friday, July 17. A Delphi spokesman repeated its statement that "multiple parties have shown interest," but it will not disclose who those parties are.

Justin Perras, a spokesman for JPMorgan Chase & Co. (JPM), which is leading the syndicate of DIP lenders, declined to comment.

Mark Barnhill, principal at Platinum Equity, repeated the firm's prepared remarks, namely that it believes "(its) offer will be validated as the highest and best before the court." Platinum has previously highlighted the "nearly three years working with Delphi and its stakeholders, under the supervision of the court, to devise a solution that best ensures the long-term health of the business after its emergence from Chapter 11."

Platinum has never been the only bidder, "nor even necessarily the favored," Barnhill continued in the statement, but pointed to "thousands of hours" of analysis and "hundreds of meetings" with all interested parties, including former parent, bankrupt General Motors Corp. (GMGMQ) and the United Auto Workers union.

Barnhill said it had developed a "comprehensive strategic operating plan," and noted, "Numerous other parties have had full and complete access to Delphi and its stakeholders, and the opportunity to make a competing bid for this business throughout the Company's extended stay in bankruptcy."

Federal-Mogul's decision not to bid reduces the likelihood that billionaire investor Carl Icahn will follow fellow investing titan, Wilbur Ross, in fashioning a large automotive supplier by buying pieces of companies that have been financially weakened amid auto maker production cuts. Icahn already owns more than 75% of Federal-Mogul's stock and is providing a chunk of the debtor-in-possession financing for Lear Corp. (LEAR), which filed for Chapter 11 protection on Tuesday.

Speculation about a Federal-Mogul bid was fueled earlier this month when Federal Judge Robert Drain blocked Delphi's quick sale to private-equity firm Platinum.

The U.S. Department of Treasury is providing Delphi with $250 million in emergency financing and has made that contingent on a sale being completed by July 23. The company is expected to run out of cash by the end of July.

Delphi filed for bankruptcy protection in 2005 and has been struggling to reorganize its business while also securing enough financing to exit the process.

-By Maxwell Murphy and Jeff Bennett; Dow Jones Newswires; 212-416-2171; maxwell.murphy@dowjones.com