DOW JONES NEWSWIRES
Dana Holding Corp. (DAN) will sell 27 million shares and use at
least half of the proceeds to repay debt, continuing the wave of
companies looking to take advantage of rallying equity markets.
The offering will boost outstanding shares by at least 27%.
Shares of Dana fell 4% to $5.52 in after-hours trading. As of
the market close Monday, the stock had fallen 7% in the past
year.
The rest of the proceeds will go for general corporate purposes,
including possible expansion and restructuring.
The auto-parts supplier, which exited bankruptcy protection in
February 2008, has suffered along with the rest of the auto
industry from a sharp drop in sales over the past year.
In August, Dana reported cost cutting helped it break even in
the second quarter after four consecutive quarters of losses,
though revenue continued to tumble. It cut another 1,400 workers
during the quarter, bringing its year-to-date job cuts to about
6,200, and also lowered its debt by about 10%.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
Kathy.Shwiff@dowjones.com