ArvinMeritor gives up bid for Dana

TROY, Mich. (Nov. 24)—ArvinMeritor Inc. rescinded its $18 per share all-cash offer to acquire Dana Corp. after Dana´s board advised its shareholders to reject the other company´s latest offer. ArvinMeritor said it will return all tendered shares to shareholders. Larry Yost, chairman and CEO of ArvinMeritor, said he and the company´s board were disappointed that Dana's board was unwilling to discuss the matter but did not feel it was in the best interests of ArvinMeritor´s shareholders "to continue expending valuable corporate resources for an indeterminate amount of time." In a letter to its own shareholders, Dana said it advised against accepting the bid partially because it believes the value of the merger is "neither attractive nor compelling" when compared to the objectives of Dana´s present business plan. It also noted that ArvinMeritor has failed to resolve any antitrust barriers to the deal since it first proposed it four months ago.