Icahn receives 2 directors appointed to vehicle equipment business Dana. What’s ahead

Carl Icahn speaking at Delivering Alpha in New York on Sept. 13, 2016.

David A. Grogan | CNBC

Company: Dana Inc. (DAN)

Activist: Carl Icahn

Share Possession: 9.91%

Average Expense: $20.95

Activist Commentary: Carl Icahn is the grandfather of shareholder activism and a real pioneer of the approach. Even though he is not slowing down at all, he not too long ago attained an arrangement with his son, Brett Icahn, to rejoin the firm as the eventual successor. Brett designs to utilize his father’s favored technique of pushing corporations to make adjustments designed to boost their inventory rates, even though he has not ruled out welcoming bets much too. This is not a departure from the tactic Carl has succeeded with for several many years. He can be helpful (i.e., Apple, Netflix) or he can be confrontational (i.e., Forest Labs, Biogen), generally it relies upon on the reaction of administration. Brett is an remarkable activist trader in his have appropriate, not simply because he is Carl’s son, but for the reason that he has shown a prolonged monitor history of extremely effective activist investing. The Sargon Portfolio he co-headed at Icahn at 1 time totaled all around $7 billion and involved extremely profitable investments in firms these as Netflix and Apple. The Sargon Portfolio appreciably outperformed the market place with an annualized return of 27%. Even so, prior to that Brett begun in 2002 with Icahn as an analyst and was afterwards dependable for strategies like Hain Celestial (280.3% return compared to 46.7% for the S&P 500), Acquire Two Interactive (81.5% vs . 64.5% for the S&P500) and Mentor Graphics (106.4% vs . 79.4% for the S&P 500).

What’s Happening?

On Jan. 7, 2022, Icahn and the business entered into a Nomination and Standstill Settlement pursuant to which the corporation appointed Brett Icahn and Gary Hu (both portfolio supervisors at Icahn Funds) as administrators to the board and agreed to involve them on their slate of director nominees for election at the 2022 once-a-year conference. Icahn agreed to abide by selected standstill provisions right until he no extended has administrators on the board.

Behind the Scenes:

Icahn has huge expertise in the automotive business, now owning and functioning Icahn Automotive, which makes up 28% of the complete web product sales of Icahn Enterprises (“IEP”). Icahn Automotive was designed, in substantial section by means of acquisitions. Commencing as an investor in Federal-Mogul in 2001, Icahn eventually obtained the complete firm by 2017. Icahn also obtained significantly all the U.S. automobile components assets of Uni-Decide on, Inc., a

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Modine, Dana terminate $1 deal for automotive business

Racine-based Modine Manufacturing Co. will no longer sell the liquid-cooled portion of its automotive business to Ohio-based Dana Inc. after the two companies agreed to terminate the deal. The deal, which called for Dana to…

Racine-based Modine Manufacturing Co. will no longer sell the liquid-cooled portion of its automotive business to Ohio-based Dana Inc. after the two companies agreed to terminate the deal.

The deal, which called for Dana to acquire around 70% of Modine’s automotive business for $1 plus the assumption of $2.15 million in debt and pension liabilities, was expected to close in the first half of 2021 when it was announced in November 2020.

Instead, the companies said they had “actively engaged in the regulatory review process in Germany for many months and have decided that it is no longer in the best interest of either party to pursue the transaction further.”

Modine, which makes thermal management systems for a number of industries, was able to sell its air-cooled automotive business to Schmid Metall in a deal that closed April 30.

None of Modine’s automotive plants are in Wisconsin and a limited number of employees involved in the business work at its Racine headquarters.

The company has been looking at alternatives for its automotive business since January 2019, when it announced a strategic review. By May 2019, the company said it planned to move forward with a sale but by November 2019 said it had walked away from a potential deal. At that time, Modine had already spent $27 million preparing the business for sale.

Neil Brinker, president and chief executive officer of Modine, said the company planned for the possibility of the deal not closing over the past several months and had developed a robust plan to move forward.

“We are ready to make significant changes to this business, particularly in response to the lower production volumes resulting from the global semiconductor shortage,” Brinker said. “During the period that the business was held for sale, we were prohibited from taking actions to substantially change the business. Now that we have terminated the agreement, we can apply an 80/20 lens to this business and make the changes necessary to significantly reduce costs and improve operating margins. This includes focusing resources on the products where we have a sustainable competitive position and that support our profitability targets. We expect this new approach to be more financially beneficial to Modine and drive long-term value for our shareholders.”

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Modine, Dana terminate $1 deal for automotive business


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