Automodular rejects takeover bid, shares halted

TORONTO -- Canadian parts supplier Automodular Corp. said on Wednesday it will reject an unsolicited takeover offer it says it received from a major automotive parts supplier that it has not named.

Automodular said the conditional expression of interest, which did not include financial terms, was to be followed by an offer to acquire additional common shares of Automodular that would have given the unnamed company 51 percent.

Automodular said in a press release it has rejected the offer on the basis that it would not be in the best interests of the company or its shareholders.

Toronto-based Automodular services the Oshawa, Ontario, operations of General Motors from three Ontario plants, and has an Ohio plant that services a nearby GM assembly plant, which produces the Chevrolet Cobalt and the Pontiac Pursuit.

Automodular also controls Tec-Mar Distribution Services, which has four plants in Michigan that supply logistics, transportation, sequencing and sub-assembly services to GM.

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