ArvinMeritor’s hostile $US2.2 billion takeover bid for rival Dana. raises substantial anti-trust issues that ArvinMeritor has yet to address, Dana said in a new court filing, according to Associated Press (AP).
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Toledo, Ohio-based Dana made the claim on Thursday in response to a lawsuit filed by ArvinMeritor in US District Court in Virginia, AP said.
There is a significant overlap in business at the two automotive suppliers, and that is likely to bring intense scrutiny from government regulators, Dana said, adding that ArvinMeritor has yet to provide any disclosures regarding competition in its public filings, according to AP.
“Instead, ArvinMeritor’s chairman and chief executive officer Larry Yost has publicly stated, with no basis, that ‘We’ll be able to get all of the regulatory approvals that are necessary’,” AP said, citing Dana’s filing.
AP noted that ArvinMeritor, a Troy-based supplier of shocks, struts, suspensions and exhaust systems, last month launched a tender offer of $US15 a share in cash for all outstanding shares of Dana, its larger competitor but Dana’s board rejected the proposal, saying it was financially inadequate and a high-risk proposition.
AP added that ArvinMeritor sued Dana in US District Court in Virginia three weeks ago, saying Dana made “material misrepresentations” in a filing explaining its rationale for rejecting the takeover bid.
Associated Press said Dana shares have been trading above the offered price, leading to speculation that ArvinMeritor may need to raise its tender offer – open until midnight August 28.
