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UK: Melrose’s £7b aerospace bid rejected

By  |  January 14, 2018

GKN, a British automotive and aerospace components company, rejected an unsolicited £7 billion (US$9.6 billion) approach from rival Melrose and announced plans to split in two.

GKN said the Melrose approach was “entirely opportunistic” and undervalued the company, though Melrose responded by saying, “[We believe] that there would be significant operational and commercial benefits arising from Melrose’s ownership of GKN’s businesses, reversing a history of existing GKN management not delivering on margin targets.”

GKN has struggled recently and its profit warning came after a downturn in its US aerospace business. It expects to write down between £80 million and £130 million (US$109.9 million and US$178.6 million, respectively) as the value of stocks at the division had been overestimated.

Full Content: The Guardian

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