Monday, 12 March 2018

GKN board rejects Melrose £8.1bn 'final offer'

The board of FTSE 100 engineering firm GKN has rejected a "final offer" worth £8.1bn in a hostile takeover attempt by Melrose.

GKN chairman Mike Turner said the takeover specialist's third offer - about 10% higher than the one previously tabled - continued to "fundamentally undervalue" it.
However Aviva Investors, which holds stakes in both companies, signalled support for the bid.

Earlier, Melrose set out the terms of its increased bid - at 467p per share - which would give GKN investors a 60% stake in the expanded Melrose.

Its previous offer valued GKN at £7.4bn and included 57% of Melrose equity.

GKN shares closed 2.5% lower - reflecting, market experts said, considerable doubt that Melrose would win the day.

BBC     News.