ArvinMeritor suing Dana over "misrepresentations"

July 30, 2003
ArvinMeritor Inc. said on Tuesday it has filed a lawsuit against Dana for making "misrepresentations" in statements concerning its rejection of ArvinMeritor's $2.2-billion bid. In the suit, filed in a U.S. district court in Virginia on Friday, ArvinMeritor accused Dana of making false statements when it announced its decision to reject ArvinMeritor's bid, which was made July 9. Reuters reported that
ArvinMeritor Inc. said on Tuesday it has filed a lawsuit against Dana for making "misrepresentations" in statements concerning its rejection of ArvinMeritor's $2.2-billion bid.

In the suit, filed in a U.S. district court in Virginia on Friday, ArvinMeritor accused Dana of making false statements when it announced its decision to reject ArvinMeritor's bid, which was made July 9.

Reuters reported that ArvinMeritor also accused Dana of making statements and disclosures that are "materially misleading, fraudulent, deceptive or manipulative in violation" of Securities and Exchange Commission regulations.

ArvinMeritor Inc. said earlier this month that it intended to acquire all of the outstanding shares of Dana for $15 per share in cash. The proposed transaction had a total equity value of approximately $2.2 billion.

Dana's board of directors rejected ArvinMeritor's hostile takeover attempt on July 23, calling ArvinMeritor's offer inadequate from a financial point of view to Dana's stockholders.

"There is virtually no rationale for accepting this offer, which represents inadequate value and a high level of risk for shareholders," Dana chairman & CEO Joe Magliochetti said in a July 23 press release.

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Tim Parry

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