From Automotive News
Detroit, Michigan -- Visteon Corp., the bankrupt former auto-parts unit of Ford Motor Co., has turned down Johnson Controls Inc.'s $1250 million offer for its interiors and electrics businesses, saying it would hurt the company's creditors.
The board voted unanimously to reject the unsolicited bid and work to emerge from bankruptcy as an independent company, Visteon said today in a statement. Johnson Controls, the largest publicly traded US-based supplier, made the cash offer in May for Visteon units that posted $4100 million in 2009 sales.
"Johnson Controls has been pursuing this for quite a while," David Leiker, an analyst with Robert W. Baird, said in an interview. "It's unlikely the Visteon board making this decision will make Johnson Controls go away."
Visteon said the proposed takeover by Milwaukee-based Johnson Controls would accelerate some costs and wouldn't benefit its creditors and equity holders. Visteon, based in suburban Detroit, said the proposed takeover would probably delay its emergence from bankruptcy and asked Johnson Controls to stop talking to its customers about the proposed acquisition.
Visteon ceo Don Stebbins, in a letter to Johnson Controls ceo Stephen Roell, said he was "concerned that JCI's recent contacts with our customers and aggressive characterisations of your proposal could potentially damage our business and relationships with key customers."
"I assume these communications are occurring without your knowledge and ask that you personally see that such communications end."