Dana sues ArvinMeritor, seeks to block takeover bid

TOLEDO, Ohio (Aug. 19)—Dana Corp. filed suit against ArvinMeritor Inc. Aug. 14, accusing the company of using confidential information to launch its takeover bid for Dana and asking the court to block the bid. In the complaint, Dana alleges that ArvinMeritor, in its acquisition attempt, is using information gathered when the two discussed a merger of their aftermarket businesses in 2001. In a statement issued Aug. 18, ArvinMeritor denied the charges and reiterated its willingness to offer more than $15 per share for Dana if the company would only work with it to "consummate a transaction." After launching its takeover bid in early July, Troy, Mich.-based ArvinMeritor filed two lawsuits against Dana. The first accuses Dana's management of neglecting their fiduciary duties and not considering the ArvinMeritor offer; the second alleges that in a filing with the U.S. Securities & Exchange Commission, Dana made materially misleading statements and omitted certain information "in order to mislead Dana's shareholders."