Tepper Ticked Off

David Tepper has had quite a run as head of Appaloosa Management, but his investment in bankrupt auto parts manufacturer Dana Corp is giving him headaches. Private equity firm Centerbridge Partners is mucking up the waters, which could significantly change the economics Appaloosa had been banking on.

“To date, management has conditioned our access to information upon us agreeing to give up inherent rights of a stakeholder, including our right to make a proposal without management’s prior approval, and has ceded to Centerbridge material decision making authority regarding the terms of access to information,” said Appaloosa. “The efforts of management and its advisors in concert with Centerbridge to exclude interested investors from the process will inevitably ensure that no alternative competitive proposals ever materialize.” Smart Money

Centerbridge’s maneuvering could put an end to Tepper’s successful streak, although his efforts at reorganizing Delphi Corporation still seem to be on track. Nobody ever said dealing with Detroit would be easy, David.

Shareholder Calls Dana Investment “Absurd”
SmartMoney/DJ Newswires

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