Monday 17 December 2018

Melrose ups offer for GKN as acceptance deadline looms

GKN became a target following profit warnings in October and November (David Davies/PA)
GKN became a target following profit warnings in October and November (David Davies/PA)

Kalyeena Makortoff

Melrose said its "final offer" for the company was equal to 467 pence per share and would give GKN shareholders a 60pc stake in Melrose.

The deadline for accepting the offer is 1pm on Thursday, March 29.

In a letter to GKN shareholders, Melrose chairman Christopher Miller criticised its takeover target's management team for refusing to hold discussions over the offer and slammed recent moves by GKN to sell its Driveline business.

"We have recently made attempts to engage in constructive discussion with the GKN Board with a view to agreeing the terms of a recommended offer.

"Your Board has unequivocally declined each time to enter into any such discussions with us and, as recently as Friday 9 March, was unwilling to even enquire on your behalf as to the terms of any revised proposal, a decision that no doubt you will find both surprising and disappointing.

"Instead of £1.4bn in cash and a majority investment in a stronger combined Melrose / GKN business, it appears the GKN Board prefers a minority stake in a foreign business (Dana) with no GKN management involvement."

Mr Miller added: "In the interests of decisively resolving the future of GKN, we are pleased to set out the terms of an increased and final offer which would give GKN Shareholders 60% of the Enlarged Group and £1.4bn in cash."

GKN has issued a statement saying it "notes the announcement made earlier today by Melrose Industries".

"The board of GKN is currently evaluating the revised offer.

"Shareholders are advised not to sign any document which Melrose or its advisers send to them.

"GKN directors will do the same in respect of their own beneficial shareholdings.

It said a further announcement will be made in due course.

Press Association

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