PRESS: Airbus To Monitor Melrose R&D Spending If GKN Bid Is Successful

23rd Mar 2018 06:59

LONDON (Alliance News) - Aircraft manufacturer Airbus SE has informed Melrose Industries PLC that it would monitor its spending on research and development should its hostile takeover of GKN PLC go forward, the Financial Times reported on Friday.

The same warning was directed at the FTSE 100-listed engineering company as well, should the takeover by the FTSE 250-listed Melrose not go forward.

"We made our position very clear that we expect our suppliers not only to perform and ramp up in line with our projections, but that we expect them to invest for long-term sustainability and the effectiveness of their business. If they skimp on R&D it will come back to bite them," said an unnamed insider, who was close to discussions.

Last week Airbus spoke against the now GBP8.40 billion bid from Melrose, saying it would be "practically impossible" to give new work to GKN if the takeover took place, with Airbus' Chief Operating Officer of commercial aircraft Tom Williams casting doubt on Melrose's commitment to "long-term investment and strategic vision".

https://www.ft.com/content/1342c572-2df6-11e8-9b4b-bc4b9f08f381?segmentId=080b04f5-af92-ae6f-0513-095d44fb3577

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