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Stock Alert: BorgWarner Rising As It Issues Breach Of Merger Notice To Delphi

BorgWarner Inc. (BWA) shares are rising on Tuesday morning after the company issued a notice to Delphi Technologies that it would think of terminating acquisition agreement as Delphi materially breached section 5.1 of the deal agreement.

Delphi has informed BorgWarner on Tuesday that it drew down $500 million revolving credit facility in view of the coronavirus outbreak. BWA shares are currently at $25.19, up 2.48 percent from its previous close of $24.58.

In January, BorgWarner had agreed to acquire Delphi Technologies in an all-stock deal of around $3.3 billion. The acquisition was expected to close in the second half of 2020. On March 24th, the BorgWarner had announced a temporary suspension of its manufacturing facilities, as many original equipment manufacturer customers are slowing down their operations in view of the coronavirus outbreak.

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