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ArvinMeritor plans to close Indiana plant

CHICAGO, Sept 24 (Reuters) - Auto parts supplier ArvinMeritor Inc. , which is waging a hostile takeover bid for rival parts maker Dana Corp. , has made a "preliminary decision" to close an Indiana plant employing 850 workers, a spokeswoman said Wednesday.

The factory, in Franklin, Indiana, makes exhaust systems. The union representing the Franklin plant workers was informed of the decision last week, ArvinMeritor spokeswoman Krista McClure told Reuters.

ArvinMeritor is planning an announcement later on Wednesday, McClure said.