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September 22, 2009

US: Dana launches public share offer

Dana Holding has begun a public offering of 27m shares of common stock.

Dana Holding has begun a public offering of 27m shares of common stock.

The company said it would use about half the net proceeds to repay debt under a credit agreement and the rest “for general corporate purposes including flexibility for future expansion and restructuring of operations”.

The offering would boost outstanding shares by at least 27%, according to Dow Jones. By market close Monday night, the stock had fallen 7% in the past year.

Dana exited bankruptcy protection in February 2008 and has suffered along with the rest of the auto industry from a sharp drop in sales over the past year.

In August, it said cost cutting helped it break even in the second quarter after four consecutive quarters of losses, though revenue continued to tumble. It cut another 1,400 workers during the quarter, bringing its year to date job cuts to about 6,200, and also lowered debt by about 10%, the report noted.

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