NEW YORK -- ArvinMeritor on Thursday extended its $4.4 billion hostile takeover offer for Dana Corp. by another month as shareholders have not been urgently moved to favor the bid.
ArvinMeritor, based in Troy, Mich., said as of 5 p.m. EDT on Thursday, about 2.28 million Dana shares, or around 1.53 percent of the company's total outstanding shares, had been tendered and not withdrawn in favor of the offer.
Toledo, Ohio-based Dana has said the $15 per share offer, launched last July, is "inadequate."
The company reiterated its position late Thursday, and drew investor attention to its better-than-expected third quarter results where it showed a significant reduction of costs.
"As demonstrated by our strong third-quarter earnings, Dana's restructuring and transformation efforts are producing results and the board continues to believe that the company's ongoing strategy is a better way to enhance value for our shareholders," said Bill Carroll, Dana's acting president and chief operating officer.
Thursday's extension is yet another phase in the takeover saga that has been punctuated by court fights, the death of Dana's chief executive and a below-par financial performance announced by ArvinMeritor earlier this month.
ArvinMeritor's results, in which it slashed its profit outlook, raised doubts among analysts about the ability, and need, for the company to complete the all-cash deal. Under the deal, ArvinMeritor would pay $2.2 billion, and acquire $2.2 billion in debt.