Acquisition in Peril: Delphi Technologies Shares Fall on BorgWarner Notice
Shares of auto-parts supplier Delphi Technologies (NYSE: DLPH) were down sharply on Tuesday after the company drew down its line of credit without permission from acquirer BorgWarner (NYSE: BWA) -- leading BorgWarner to warn that it may back away from the $3.3 billion deal. As of 11 a.m. EDT, Delphi Technologies' shares were down about 19% from Monday's closing price.
Back in January, Delphi agreed to be acquired by BorgWarner in a $3.3 billion deal that valued Delphi's equity at $1.5 billion. (The remainder is Delphi's debt, which BorgWarner agreed to assume.) Delphi's shares soared after the news was announced.
Delphi's deal to be acquired by BorgWarner might be in peril after the company drew down a $500 million credit line. Image source: Delphi Technologies.
Source Fool.com
