ArvinMeritor Inc. said Sunday it has terminated its $18 per share all-cash tender offer to acquire all of the outstanding common shares of Dana Corp. following Dana's announcement
rejecting a $2.7 billion takeover bid by ArvinMeritor.
The rebuff by Dana was issued a week after ArvinMeritor increased its bid to $18 a share from the $15 it had bid in July.
Dana, based in Toledo, Ohio, has opposed the takeover since it was first proposed. It said it rejected the offer because of concerns about the takeover being approved by antitrust regulators and ArvinMeritor's ability to obtain financing. The company said it notified ArvinMeritor of its rejection in a letter to its chairman.
No Dana shares were purchased by ArvinMeritor pursuant to the offer, and all tendered shares will be returned promptly.
Larry Yost, chairman and chief executive officer of ArvinMeritor, said, "We are disappointed that the Dana board is unwilling to sit down with us and has chosen instead to deprive Dana's shareowners of the immediate and substantial value inherent in our $18 per share offer. However, as we have previously stated, this was our final offer.
"Our primary responsibility is to ArvinMeritor's shareowners, and we do not believe it is in their best interests to continue expending valuable corporate resources for an indeterminate period of time. ArvinMeritor believes industry consolidation is necessary and inevitable, and we will pursue an organic growth strategy, while examining opportunities for consolidation that enhance value for our shareowners.
"ArvinMeritor will continue to focus on growth products and on expanding its product portfolio, and remains well-positioned to compete in established and emerging markets around the world. Our strategy will continue to build upon our ability to identify, execute and deliver critical cost efficiencies, while we focus on providing customers with superior technology, products and services they need to remain competitive in a changing industry environment."