Dana Holding To Sell 27 Million Shares To Reduce Debt

   DOW JONES NEWSWIRES 
 

Dana Holding Corp. (DAN) will sell 27 million shares and use at least half of the proceeds to repay debt, continuing the wave of companies looking to take advantage of rallying equity markets.

The offering will boost outstanding shares by at least 27%.

Shares of Dana fell 4% to $5.52 in after-hours trading. As of the market close Monday, the stock had fallen 7% in the past year.

The rest of the proceeds will go for general corporate purposes, including possible expansion and restructuring.

The auto-parts supplier, which exited bankruptcy protection in February 2008, has suffered along with the rest of the auto industry from a sharp drop in sales over the past year.

In August, Dana reported cost cutting helped it break even in the second quarter after four consecutive quarters of losses, though revenue continued to tumble. It cut another 1,400 workers during the quarter, bringing its year-to-date job cuts to about 6,200, and also lowered its debt by about 10%.

-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357; [e-mail]