DETROIT - ArvinMeritor Inc. has asked antitrust regulators to examine the merits of its proposed buyout of Dana Corp.
ArvinMeritor on Friday requested a review of the $4.4 billion offer, one day after Dana charged in court documents that ArvinMeritor had failed to explain the risks of U.S. antitrust review to investors.
Dana's assertions were contained in its counterclaim in the suit brought July 9 by ArvinMeritor in U.S. District Court for the Western District of Virginia in Lynchburg, Va. Dana said ArvinMeritor had an obligation to warn shareholders about the risks of its $15-per-share offer - including the possibility that regulators could block the deal or dismantle Dana to meet antitrust requirements.
Antitrust fears are not unfounded. A combined Dana and ArvinMeritor would have more than 80 percent of the market for axles, drive shafts and foundation brakes for medium- and heavy-duty trucks, Dana said.
Dana's suit also rejected ArvinMeritor's claim that Dana's response to the tender offer contained misstatements and omissions and failed to state important facts.
Also this week, Dana filed a response to an ArvinMeritor suit filed July 8 in Buena Vista, Va., rejecting ArvinMeritor's claim that Dana breached its duty to shareholders when it rejected ArvinMeritor's proposal without a meeting.
ArvinMeritor said Dana's counterclaims are without merit and "we will contest them vigorously."
The companies are also battling in court in Lucas County, Ohio, over the use of confidential information from a proposed joint venture in 2001.