Melrose ups bid UK engineer GKN

AFP, LONDON: Turnaround specialist Melrose Industries yesterday raised its takeover offer for struggling British engineering group GKN after an initial bid was rejected as hostile last week.

Melrose, which specialises in buying and rejuvenating ailing manufacturers, said it was raising its bid to £7.4 billion (worth $10.2 billion or 8.3 billion euros.”

GKN had turned down an unsolicited bid of £7.0 billion last Friday, slamming it as “entirely opportunistic” and arguing that it “fundamentally” undervalued the company.

Melrose said that the new cash-and-shares offer would “re-energise and re-purpose GKN’s operations” to deliver “significant” benefits to shareholders. The deal would see GKN, which makes wing tips for planes made by European giant Airbus, own about 57 per cent of the combined group.

Melrose’s offer, pitched at the equivalent of 430.1 pence per share, comes after GKN had issued a profits warning in October over the performance of its US aerospace business.

GKN’s share price edged higher in yesterday morning deals, gaining 0.45 per cent to 444 pence on London’s falling FTSE 100 index.

 

Melrose ups bid UK engineer GKN

AFP, LONDON: Turnaround specialist Melrose Industries yesterday raised its takeover offer for struggling British engineering group GKN after an initial bid was rejected as hostile last week. Melrose, which specialises in buying and rejuvenating ailing manufacturers, said it was raising its bid to 7.4 billion (worth $10.2 billion or 8.3 billion euros. GKN had turned down an unsolicited bid of 7.0 billion last Friday, slamming it as entirely opportunistic and arguing that it fundamentally undervalued the company. Melrose said that the new cash-and-shares offer would re-energise and re-purpose GKNs operations to deliver significant benefits to shareholders. The deal would see GKN, which makes wing tips for planes made by European giant Airbus, own about 57 per cent of the combined group. Melroses offer, pitched at the equivalent of 430.1 pence per share, comes after GKN had issued a profits warning in October over the performance of its US aerospace business. GKNs share price edged higher in yesterday morning deals, gaining 0.45 per cent to 444 pence on Londons falling FTSE 100 index.