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Dana board rejects latest bid from ArvinMeritor

NEW YORK, Nov 23 (Reuters) - The board of auto parts supplier Dana Corp. said on Sunday it unanimously rejected the latest unsolicited takeover bid from ArvinMeritor Inc. , which valued Dana's shares at $18 each.

Dana said the $2.7 billion offer was "neither attractive nor compelling," even if ArvinMeritor could finance the deal, which Dana's financial advisers questioned.

Dana also said it thinks antitrust regulators would view the deal as illegal and a divestiture proposal from ArvinMeritor as insufficient.

"We do not believe that pursuing this unattractive and highly conditional proposed transaction is in the best interests of Dana or our shareholders," Dana's Acting Chairman Glen Hiner wrote in a letter to shareholders that was released by the company.

Dana's shares closed on Friday on the New York Stock Exchange at $15, well below ArvinMeritor's offer price, as investors remained skeptical that a deal would occur.