Dana Says No to ArinMeritor's Takeover

Auto parts supplier ArvinMeritor Inc. has ended its takeover bid for Dana Corp. after the rival's board on Sunday rejected a recently increased $18-per-share offer.

ArvinMeritor had planned to terminate its latest offer — its fourth — on Dec. 2 unless Dana's board of directors agreed to begin negotiating a merger agreement.

"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," Larry Yost, chairman and chief executive of the Troy-based ArvinMeritor, said in a statement.

Toledo, Ohio-based Dana — ArvinMeritor's largest competitor and the parent company for Brake Parts Erie — sent Yost a letter informing him of the decision and approved another letter to shareholders explaining the decision.

ArvinMeritor employs about 32,000 people at more than 150 manufacturing facilities in 27 countries. Dana employs about 60,000 people in 30 countries.

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