DETROIT - Under financial pressure from the acquisition of Echlin Inc., Dana Corp. CEO Joe Magliochetti in early 2001 agreed to secret talks with rival CEO Larry Yost at ArvinMeritor Inc.
The proposal: a joint venture that would allow both companies to slash the costs of running their light-vehicle aftermarket divisions.
But Dana and ArvinMeritor could not reach a deal after months of talks and an exchange of confidential financial data. Both promised never to make use of the data.
Dana claims that ArvinMeritor broke that promise. Dana filed a lawsuit Aug. 14 in Lucas County, Ohio, seeking to block ArvinMeritor from completing its $15-a-share tender offer. The lawsuit alleges that ArvinMeritor violated the confidentiality agreement from the aborted joint-venture talks.