DCNAQ .30 X .315
CHICAGO, Oct 5 (Reuters) - Hedge fund Appaloosa Management LP, which offered to buy bankrupt auto parts supplier Dana Corp (DCNAQ.PK: Quote, Profile, Research), said in a U.S. regulatory filing it was open to discussing compromises or options that could further enhance the transaction for all parties.
The filing contained a letter to Dana's board of directors from Appaloosa, in which the hedge fund also said it did not intend to participate in an endless bidding process for the auto parts supplier.
"We could envision a potential transaction structure in which Centerbridge invests $250 million in the Series A preferred stock with controlling governance provisions, and Appaloosa provides the funding for $500 million Series B preferred stock investment and rights offering," Appaloosa said in the letter.
Appaloosa, which holds about 15 percent stake in Dana, has been bidding against Centerbridge Capital Partners. In July a bankruptcy judge approved Centerbridge's $750 million investment plan in Dana, which Appaloosa has criticized as inadequate.
"Appaloosa's proposal is materially superior to the competing proposal from Centerbridge Capital Partners," the hedge fund wrote.
"Appaloosa stands ready to complete a transaction consistent with our September 21st Bid Letter or pursue alternatives along the lines outlined above," the letter added. "Nonetheless, we will not participate endlessly in a process that is devoid of any intention to produce results."
The hedge fund's offer will expire on Oct 9. (Additional reporting by Dilipp S. Nag in Bangalore)
This is a very large company. It will be interesting to see if they emerge from bankruptcy and what that will do to the PPS or if the buyout occurs.
AI
