Dana accuses ArvinMeritor of violating 2001 confidentiality agreement
Aug 18, 2003 12:00 PM
Dana has filed another lawsuit against ArvinMeritor Corp, this one accusing ArvinMeritor of violating a 2001 confidentiality agreement between them. The lawsuit seeks to prevent ArvinMeritor from proceeding with its tender offer for Dana, which rejected ArvinMeritor's hostile $15-a-share bid as inadequate. The lawsuit says ArvinMeritor and Dana began confidential discussions in 2001. The companies were exploring the possibility of a joint venture for their aftermarket business. The confidentiality agreement allowed ArvinMeritor to use Dana's confidential information "solely for the purpose of analyzing the feasibility and desirability of entering into the proposed business relationship." Dana's suit says ArvinMeritor violated the agreement by relying on confidential information in connection with its hostile bid and claims ArvinMeritor's chairman and CEO, Larry Yost, "boasted" of ArvinMeritor's use of information in a conference call July 8.
