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Johnson Controls May Increase Offer to Visteon During Review May 25, 2010, 12:22 AM EDT More From Businessweek
* Johnson Controls $1.25 Billion Visteon Bid May Spur Court Fight * Visteon Proposes Sale of Parts Plants to Johnson Unit (Update1) * Visteon Managers to Split Up to $237 Million in Stock (Update1) * JCI Offers $1.25 Billion Cash for Visteon Businesses (Update2) * Visteon Keeps Reorganization Control as Protest Fails (Update2)
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By Jeff Green
May 25 (Bloomberg) -- Johnson Controls Inc. said it may be willing to increase its unsolicited $1.25 billion offer for bankrupt Visteon Corp.?s interiors and electronics businesses as it completes its due diligence.
?To the extent that we are able to find additional value through the due diligence process, we may be able to increase our price for the two businesses,? JCI Chief Executive Officer Stephen Roell said in a May 20 letter to Visteon CEO Don Stebbins that was released yesterday in a regulatory filing.
Due diligence could be completed as quickly as 30 days, Roell said, without giving an amount by which the bid might be increased. The cash offer for the former Ford Motor Co. unit was made in a May 20 letter, Milwaukee-based Johnson Controls said in a separate statement last week. It didn?t release the letter at that time.
Visteon said May 21 in a statement that Johnson Controls, the largest publicly traded U.S. auto-parts maker, is a competitor and stands to benefit from introducing ?delay and complexity? into its reorganization.
Jacqueline Strayer, a JCI spokeswoman, didn?t return a phone call seeking comment.
Johnson Controls fell 51 cents, or 1.8 percent, to $27.68 at 4:15 p.m. in New York Stock Exchange composite trading. The shares have climbed 48 percent in the past year.
Visteon, spun off from Ford in 2000, filed for bankruptcy in May 2009, listing assets of $4.58 billion and debt of $5.32 billion in Chapter 11 documents.
--Editors: Jamie Butters, Stephen West
To contact the reporter on this story: Jeff Green in Southfield, Michigan, at jgreen16@bloomberg.net
To contact the editor responsible for this story: Jamie Butters at jbutters@bloomberg.net Sponsored Links
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