12th Mar 2018 08:15
Melrose - a FTSE 250-listed industrial turnaround firm - increased its bid to 1.69 Melrose shares for every GKN share held, plus an unchanged
Melrose noted that its new offer represents a 43% premium to the
As part of its new, final offer, Melrose increased only the share element of its deal. Under the prior deal Melrose offered 1.49 Melrose shares in addition to the
Melrose emphasised that the deal values GKN "significantly above" the highest price GKN has traded over the past decade.
The increased bid follows the announcement on Friday that GKN had reached an agreement to combine its automotive Driveline business with
On Monday, Melrose reiterated its belief that the Dana agreement was a "bad deal" for GKN shareholders in what it termed a "hasty fire sale". It would result, Melrose explained, in the sale of GKN's Driveline business before any improvement "that all parties agree is achievable". It also forces GKN shareholders to accept shares in a US firm which many would not be able to hold, and they also would have to pay tax on those Dana shares.
The deal also would see pension liabilities for GKN's remaining aerospace business stand at ten times profit. This is more than three times the FTSE 100 average, Melrose argued.
Melrose reiterated investors had until March 29 to accept the new offer.
Shares in Melrose were 0.2% lower at
Related Shares:
MelroseGKN PLC