Shares of car and truck parts maker Dana Corp. (Pink Sheets: DCNAQ) closed at $2.11, up 21 cents, or 11 percent this afternoon.Shares remained high throughout the day, following Friday’s news that the company is being pursued by Appaloosa Management LP. Appaloosa announced last week its interest in entering into a confidentiality agreement with Dana Corp.
Dana Corp., in the midst of preparing a business plan in compliance with bankruptcy procedure, rejected Appaloosa’s request though it has extended confidentiality to other companies. Accessibility to the information would enable Appaloosa to determine if Dana Corp.’s equity will have value through reorganization.
Dana Corp. entered Chapter 11 bankruptcy in March 2006. On its Web site the company said it intends to use the Chapter 11 protection to implement long-term solutions that will enable it to prepare a stable and profitable future. Dana Corp. has secured $1.45 billion in debtor-in-possession financing to continue normal operations.
Earlier this month the U.S. Bankruptcy Court for the Southern District of New York approved the company’s sale of two businesses comprised of the Fluids Products business for an aggregate of $85 million.
