ArvinMeritor Inc. has given up its four-month bid to buy out competitor Dana Corp. with Dana turning down one last, higher offer for the company.
Troy-based ArvinMeritor announced Nov. 23 it would terminate its buyout proposal, stating that pursuing the plan was no longer in its best interest.
``ArvinMeritor believes industry consolidation is necessary and inevitable, and we will pursue an organic growth strategy, while examining opportunities for consolidation that enhance value for our shareowners,'' company officials said in a statement.
ArvinMeritor, with $7.3 billion in annual sales, launched its bid in July, offering $15 per share for Toledo, Ohio-based Dana. Both companies are more well-known for metal specialties, but both also have plastics operations. ArvinMeritor recently received a top award from the Society of Plastics Engineers' Automotive Division for its work on a thermoplastic roof module on the Smart Roadster sold in Europe.
Dana, with annual sales of about $9.6 billion, makes under-the-hood systems and gaskets, seals and hoses.
Dana repeatedly rejected offers. When ArvinMeritor boosted its bid to $18 a share on Nov. 17, the supplier again turned it down.
In letters to shareholders, Dana executives maintained that combining the companies would have raised antitrust issues, and noted that the Michigan company had not raised enough capital to cover the buyout costs.
``The value being offered by ArvinMeritor - even if it were obtainable - is neither attractive nor compelling,'' Acting Chairman of the Board Glen Hiner wrote in a Nov. 23 notice.