ArvinMeritor needs financing for Dana takeover

ArvinMeritor Inc. has not reached agreements with lenders on financing for the proposed $2.2 billion merger with Dana Corp., according to published reports. In a regulatory filing late Monday, ArvinMeritor, which launched a hostile takeover attempt for Toledo, OH-based Dana on July 9, said it made the additional disclosure in response to a request from Ohio securities regulators. Tom Geyer, assistant director of the Ohio Department of Commerce, told Reuters that companies attempting to buy large public corporations typically have their financing lined up in advance, making ArvinMeritor's case "unusual." Ohio securities regulators wanted to make sure Dana shareholders were aware that ArvinMeritor had not yet secured the financing for its proposed purchase of Dana, he said. In the filing, ArvinMeritor said that it intends to use a combination of cash and new financings to purchase all of Dana's common stock. The financings could include new credit facilities, the sale of debt securities such as high-yield bonds or accounts receivable securitizations, or other methods to raise capital.