ArvinMeritor has terminated its $18.00 per share all cash tender offer to acquire all of the outstanding common shares of Dana Corporation.
The news follows Dana’s announcement that its board of directors had recommended that its shareowners reject ArvinMeritor’s offer.
Larry Yost, chairman and chief executive officer of ArvinMeritor, said he was disappointed that the Dana Board had chosen to ‘deprive’ Dana’s shareowners of the substantial value inherent in the $18.00 per share offer.
For his part, Glen Hiner, acting chairman of the board of Dana said that the decision by the Dana board was based, in part, on its belief that the ArvinMeritor offer was ‘neither attractive nor compelling’.
He said that the offer itself was conditional upon regulatory clearance and financing issues and claimed that over the last four months since its first proposal, ArvinMeritor had failed to show any progress towards resolving those issues.
The ArvinMeritor board, he said, believed that the US Federal Trade Commission (FTC) would likely view the proposed transaction as illegal and ArvinMeritor’s divestiture proposal as insufficient to resolve the ‘serious antitrust issues’ that had been raised by its proposed transaction.
‘We do not believe that pursuing this unattractive and highly conditional proposed transaction is in the best interests of Dana or our shareholders,’ he concluded.