Visteon said Johnson Controls’ US$1.25bn cash offer for its interiors and electronics businesses “continues to lack important information and remains highly conditional and vaguely defined” despite a request for additional clarification in a 17 May letter to JCI.
“It is unclear at this point whether this proposal holds out any real prospect of enhancing value to Visteon’s constituents,” the supplier said in a statement.
“This proposal has surfaced very late and at a critical point in our Chapter 11 process. Johnson Controls is a direct competitor that stands to benefit by introducing delay and complexity into the Visteon reorganisation process. Visteon has had extensive and difficult experiences with Johnson Controls in prior transactions. We are mindful that exploring a transaction of this size and scope at this time could distract the company from its primary objective of completing the ongoing reorganisation process in a manner that enhances value for all of our constituents.
“Visteon’s customers and global joint venture partners have been extremely supportive throughout the reorganisation process and support the company’s goal of a near-term emergence.”
Visteon said it anticipated “further dialogue” with Johnson Controls but would continue on its path toward emerging from Chapter 11. Its disclosure statement hearing is scheduled for later today (Monday, 24 May, 2010) in US bankruptcy court in Wilmington, Delaware.