Echlin Accepts White Knight Bid

Echlin Inc. agreed to be acquired for $3.4 billion in stock by Dana Corp., a bid that topped a 3-month-old hostile $3-billion offer from SPX Corp. The Echlin-Dana combination would create an auto parts giant with annual sales of $13 billion, joining Echlin’s strength in the aftermarket segment with Dana’s strong position in the original-equipment sector. SPX, based in Muskegon, Mich., said it is evaluating the situation and will consider its options. SPX has offered to buy Echlin for $3 billion in cash and stock, or about $47.50 per share. The companies did not say if employees might lose their jobs. Branford, Conn.-based Echlin has 28,000 employees, and Toledo, Ohio-based Dana employs 50,000. Echlin stock closed up $4 at $51.56 on the New York Stock Exchange. Shares of Dana fell $3.06 to close at $56.13; SPX stock rose $1.06 to close at $73.31, also on the NYSE.