Dana Corp. stock up on takeover offer

Tuesday, July 8, 2003 | 9:50 a.m.

DETROIT -- Auto parts maker ArvinMeritor Inc. said today it will make an unsolicited, $2.2 billion takeover bid for rival Dana Corp. after failing to get Dana to discuss a possible buyout.

ArvinMeritor, based in Troy, Mich., said it will offer $15 in cash for all outstanding Dana shares, a 25 percent premium over Dana's closing stock price Monday. In early trading today on the New York Stock Exchange, Dana shares shot up 40 percent, or $4.83, to $16.85. ArvinMeritor shares were down 50 cents at $20.50.

ArvinMeritor Chairman and Chief Executive Larry Yost said the company would prefer to meet with Dana's board of directors and advisers, but "Dana has rejected our prior proposals and refused our requests to enter into discussions."

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