Friday, 12 January 2018

Engineering giant GKN rejects bid that values the company at £7bn



Shares in GKN, one of the UK's biggest engineering firms, have soared after it rejected a bid that values the company at £7bn.

 
Melrose made the unsolicited offer of 405p a share on 8 January.


Shares in GKN, which makes wing tips for Airbus planes and parts for Porsche cars, jumped more than a quarter to 423p.


Its board said the cash and shares bid was "entirely opportunistic" and "fundamentally" undervalued GKN.


Shares in Melrose, a manufacturing turnaround firm, also rose sharply, adding 7% to 229p. Takeover rules mean it must make a firm offer by 9 February or walk away for six months.
Liberal Democrat leader Vince Cable called on Business Secretary Greg Clark to block the takeover: "GKN stands for long term investment in advanced manufacturing whereas Melrose are in the business of short-term financial engineering."



BBC         News.