Appaloosa Calls Strike Foul

Date: Wednesday, September 26, 2007
Author: HFN Daily Report

Activist hedge fund firm Appaloosa is making its bid for auto parts maker Dana Corp. conditional on there not being a strike at any of the major car manufacturers in the United States.

The announcement came the day after the United Auto Workers declared a strike at all General Motors plants in the U.S. Dana supplies parts to GM as well as to Ford, Chrysler, and a number of foreign auto makers.

In a filing with the Securities and Exchange Commission, Appaloosa proposed an additional closing condition that there shall not be any material strike, labor stoppage or slowdown at Dana or at GM, Chrysler, Ford or any of their subsidiaries. The UAW is currently in negotiations with GM and hopes to end the strike as soon as possible.

Appaloosa holds about 15% of Dana. Its proposal is vying with a rival plan put forth by private equity firm Centerbridge Capital Partners. Both would like to lead Dana as it attempts to exit bankruptcy protection.

David Tepper started Appaloosa in 1993. The firm is leading a consortium attempting to bring another auto parts maker, Delphi, out of bankruptcy as well.