Dana Holding Begins Public Offering Of 27M Shares

TOLEDO, Ohio (AP) — Auto-parts supplier Dana Holding Corp. said Monday it has started a public offering of 27 million shares.

Dana said it plans to grant the underwriters a 30-day option to purchase up to 4 million additional shares.

The company plans to use the net proceeds from the offering for general corporate purposes, including future expansion and restructuring of operations. It also will use about 50 percent of the total proceeds, estimated at up to about $178.3 million at Monday's closing price, to repay debt.

Goldman, Sachs & Co. is the sole book-runner. Citi and J.P. Morgan are acting as co-managers. The company currently has about 100.1 million shares outstanding.

Shares of Dana dropped 49 cents, or 7.9 percent, to close earlier at $5.75.