Dana Incorporated (NYSE:DAN), a key player in the manufacture of motor vehicle parts with annual revenues of $10.4 billion, announced on Thursday significant changes to its board composition and agreements with activist investor Carl C. Icahn's Icahn Group.
According to InvestingPro data, the company currently maintains a FAIR financial health score and has consistently paid dividends for 13 consecutive years. The company, headquartered in Maumee, Ohio, revealed the entry into a material definitive amendment to the Director Appointment and Nomination Agreement originally dated January 7, 2022. With a current market capitalization of $1.9 billion and a strong liquidity position evidenced by a current ratio of 1.49, Dana appears well-positioned for its strategic initiatives.
The amendment, effective January 23, 2025, comes with the appointment of Brett Icahn and Christian Garcia as new members of Dana's board of directors. They fill the vacancies left by the resignations of Gary Hu and Steven Miller, both of whom were previous appointees under the original agreement. The company stated that the departures were not due to any disagreements with Dana's operations, policies, or practices.
The updated agreement also modifies the standstill term, extending it to either 30 days prior to the director nomination deadline for the 2027 Annual Meeting, contingent upon the achievement of specific business objectives and the nomination of both Icahn Designees for re-election at the 2026 Annual Meeting, or to 30 days before the 2026 Annual Meeting director nomination deadline if those objectives are not met.
As part of their new roles, Brett Icahn has joined the Audit Committee and the Nominating and Corporate Governance Committee, while Christian Garcia has been appointed to the Compensation Committee and the Technology and Sustainability Committee. The new appointees will receive compensation equivalent to that of other non-employee directors of Dana Inc.
In other recent news, Dana Holding Corporation has been the focus of several significant developments. Analyst firms UBS and Deutsche Bank (ETR:DBKGn) have upgraded Dana's stock from Neutral to Buy, with UBS setting a price target of $18 and Deutsche Bank doubling its previous price target to $19. These upgrades come in light of Dana's strategic move to sell its Off-Highway business, a decision expected to generate substantial proceeds for debt reduction. Additionally, Dana has outlined a cost-saving plan aiming to save approximately $200 million by 2026.
Simultaneously, Barclays (LON:BARC) has upgraded Dana's stock from Equalweight to Overweight, citing an improving outlook despite the company's EBITDA growth not meeting market expectations. However, JPMorgan (NYSE:JPM) has reduced its price target for Dana, while maintaining an Overweight rating on the stock. This adjustment follows Dana's third-quarter earnings report, which revealed a revenue of $2.476 billion.
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