GKN puts up final Melrose bid defence as shareholder vote deadline looms
GKN’s new management team made its final pitch for survival on Wednesday by attacking Melrose as a “high-risk choice” for the future of the firm.
The engineering giant laid out its defence blueprint in starker terms, claiming to rebut Melrose’s £8 billion bid on issues ranging from pensions, to management and the future of the firm’s struggling aerospace business.
Shareholders are due to vote on the deal by March 29.
The split so far is close, with 7% of shareholders publicly backing Melrose and 9% GKN.
Chief executive Anne Stevens said: “Melrose is the high-risk choice. Melrose’s offer does not come close to reflecting GKN’s true value and I urge shareholders to reject it.”
GKN said fixing problems at its US aerospace business was already “well under way”.
Melrose has promised investors a better future under its leadership, upping its bid to 467p a share last week.
It has pledged more money for the pension scheme and promised to retain GKN’s businesses for longer to improve them before selling.
