26th Nov 2018 09:13
LONDON (Alliance News) - Melrose Industries PLC is mulling its options after receiving some disappointing bids for recent acquisition GKN's Powder Metallurgy unit, Sky News reported.
Melrose, which took control of GKN in April after an acrimonious hostile takeover bid, has previously said it was exploring strategic options for the unit.
Sky said it has learnt that Melrose executives are deciding whether to go ahead with an immediate auction of GKN Powder Metallurgy following initial bids last week valuing the unit at around GBP1.6 billion.
Sky said this figure was beneath analyst forecasts that the unit would command a price tag of GBP2 billion, and this has raised questions over whether Melrose could halt the sale process.
"They will sell the business, but it may not be through this particular auction," a person close to Melrose said on Sunday evening, according to Sky.
The news agency reported that sources said Apollo and PAI Partners were among the private equity firms which tabled offers last week.
https://news.sky.com/story/melrose-weighs-options-after-low-ball-bids-for-gkn-unit-11563611
Melrose shares were down 4.2% at 174.15 pence on Monday, the worst performer in the FTSE 100 index.
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