The board of automotive parts supplier Dana Corporation has unanimously rejected the latest unsolicited takeover bid from ArvinMeritor, which valued Dana’s shares at $US18 each, Reuters reported.
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Shortly after Dana’s announcement, ArvinMeritor said it terminated the tender offer for Dana, the report added.
Dana reportedly said the $2.7 billion offer was neither “attractive nor compelling,” even if ArvinMeritor could finance the deal, which Dana’s financial advisers questioned.
According to Reuters, Dana also said it thinks antitrust regulators would view the deal as illegal and a divestiture proposal from ArvinMeritor as insufficient.
“We do not believe that pursuing this unattractive and highly conditional proposed transaction is in the best interests of Dana or our shareholders,” Dana’s acting chairman Glen Hiner wrote in a letter to shareholders that was released by the company, Reuters said.
