VAN BUREN TOWNSHIP, Mich. -- Visteon Corp. has announced that after "a thorough analysis," it is rejecting an unsolicited proposal from Johnson Controls Inc. (JCI) to purchase certain assets associated with Visteon's interiors and electronics businesses.

In late May, Johnson Controls told Visteon it was interested in the assets and offered the company $1.25 billion in cash for the two businesses.

At the time, JCI Chairman and CEO Stephen Roell said the businesses were an “excellent strategic fit” within its Automotive Experience division and would help broaden its global offerings since the two business are among the fast-growing in the Chinese automotive interiors industry. In response, Visteon questioned JCI’s intentions and objected to the offer, describing it as highly conditional and “vaguely defined.”

Visteon has since followed-up with an official rejection of the offer, sent yesterday to JCI via letter.

The letter states that after carefully studying the proposal, Visteon’s board unanimously concluded that Visteon stakeholders, customers and employees would be best served by moving forward with its reorganization plan to emerge from Chapter 11 as a stand-alone company.

“Without risk-adjusting your proposal, our careful analysis demonstrates that your acquisition of selected assets, while excluding certain liabilities, would accelerate other costs and would not significantly enhance recoveries to our creditors or provide recovery for our equity holders,” the letter states. “Additionally, the realization of other risks associated with the proposed transaction would negatively impact our creditors and leave equity holders further removed from any recovery. It is also likely your proposal would involve a lengthy extension to the time we would remain in bankruptcy, which could undermine much of the successful work we have done to emerge as a strong company in the sector.”