ArvinMeritor makes bid for Dana Corp
Jul 8, 2003 12:00 PM
Dana Corporation, Toledo OH, says its board will evaluate a $2.2 billion tender offer made July 8 by Arvin Meritor, Troy NY, to purchase outstanding Dana shares--and advise its shareholders of its position within 10 days, according to Dana information. ArvinMeritor is offering Dana $15 per share in cash, according to ArvinMeritor information. Dana stock rose to $16.30 after the announcement, having closed July 7 at $12.02.
Additionally, ArvinMeritor filed a lawsuit against Dana and its board of directors, asserting, among other things, that Dana’s board breached its fiduciary duties to Dana’s shareowners because it initially rejected ArvinMeritor’s proposals without meeting with ArvinMeritor. ArvinMeritor currently owns 1,085,300 shares of Dana’s common stock.
“We believe that to succeed in today’s increasingly global and competitive automotive supplier industry, we must take actions that will increase the opportunities available to our company in the future and enhance value for our shareowners, customers, and employees,” said Larry Yost, ArvinMeritor chairman and chief executive officer. "We would prefer to meet with the Dana board and its advisors to discuss our all-cash offer and negotiate a mutually acceptable transaction; however, Dana has rejected our prior proposals and refused our requests to enter into discussions. Therefore, we believe it is necessary to take our offer directly to Dana’s shareowners.”
Dana said in a statement that it urges its shareholders to defer making a determination whether to accept or reject ArvinMeritor’s offer until they have been advised of Dana’s position with respect to the offer.