TROY, Mich. (July 9)—Dana Corp.'s stock rose nearly 35 percent to close at $16.20 on July 8 after ArvinMeritor Inc. launched a $15 a share—or $2 billion—hostile takeover bid for the firm. ArvinMeritor´s stock, however, dropped slightly to close at $20.29. A year ago, Dana´s stock closed at $17.77, but it was trading at only $6.31 in mid-March. Not all Dana stockholders are optimistic the company could get a higher buyout offer than ArvinMeritor´s bid. Chapman Capital L.L.C., a hedge fund with holdings in Dana, sold off half of its 240,000 Dana shares in the company the day of the announced bid. "We think the market is giving too much credit to a substantially higher and successful bid from Arvin or a third party bidder," said Robert L. Chapman, Jr., managing member of the firm. "This bid is a very full price."
Dana´s stock up on news of ArvinMeritor bid
Rubber & Plastics News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].