Dana Corporation, Toledo OH, has announced that its Board of Directors has rejected an unsolicited tender offer from ArvinMeritor Inc, Troy MI, after a thorough review and consultation with its legal and financial advisors. On July 9, 2003, ArvinMeritor launched a tender offer for all outstanding shares of Dana common stock at a price of $15 per share. Dana filed a Schedule 14D-9 with the Securities and Exchange Commission July 22 recommending that its shareholders not tender their stock in response to this offer.
The board stated as reasons for its recommendation that ArvinMeritor's offer is a financially inadequate, high-risk proposal that is not in the best interests of Dana or its shareholders. In addition, the board cited the significant financing risks and serious antitrust concerns raised by the offer that could prevent its completion.