Appaloosa Management LP asked Dana Corp. s board to drop or ease a takeover defense that makes it difficult for the bankrupt auto-parts supplier s shareholders to work together on an alternative reorganization plan.
Appaloosa, whose stake of almost 15 percent makes it Dana s largest holder, requested the move in a letter to directors of the Toledo firm, according to a U.S. regulatory filing. Dana has denied Appaloosa s request for details about the progress of the company s restructuring plan.
The investment firm is trying to get around Dana s poison pill defense, which includes a requirement for a unanimous shareholder vote to call a special investor meeting or authorize joint action among holders. Appaloosa said the provision could stay in place as long as Dana lets shareholders cooperate.