Dana Rejects Offer From Rival ArvinMeritor

Vehicle parts maker Dana Corp. said Tuesday that its board of directors had rejected a $2.2 billion offer from rival ArvinMeritor Inc., news services reported.

Troy, Mich.-based ArvinMeritor, one of the largest makers of axles for commercial trucks, had offered $15 in cash for all outstanding shares of its larger competitor.

Dana Chief Executive Officer Joe Magliochetti said there is no price ArvinMeritor can offer that would make it consider the smaller auto-parts maker's hostile takeover bid, Bloomberg reported Wednesday.

Arvin currently owns more than 1 million shares of Dana's common stock.

Dana's board called the offer financially inadequate and a high-risk proposal not in shareholders' best interests, the Associated Press said. The board also noted there were significant financing risks and antitrust concerns that could prevent completion of such a deal.

In a statement, Arvin said it remains committed to the transaction and "may be prepared to analyze further whether a higher value is warranted."

On Tuesday, Dana reported second-quarter earnings of $52 million, or 35 cents a share. That matches the results the company posted for the same three-month period of 2002. Net sales fell slightly to $2.54 billion from $2.58 billion.

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