Wednesday, January 17, 2018

GKN rejects £7.4bn hostile takeover bid from Melrose

Terms of deal unchanged but rise in turnaround specialist’s share price means value of offer for engineering firm has increased

GKN has rejected a firm £7.4bn bid from Melrose after the turnaround specialist went hostile in its attempt to buy the aerospace and automotive group.

The terms of the cash and share deal are unchanged since Melrose’s initial approach was revealed on Friday, consisting of 1.49 Melrose shares and 81p in cash for every GKN share. But a rise in Melrose’s share price since Friday from 215p to 230p means the value of the offer has increased from 405p a share to 423p. In the market GKN has added 0.2p to 442.2p, with the City betting either on a higher bid from Melrose or a rival bidder.

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from Mergers and acquisitions | The Guardian http://ift.tt/2Bavudi

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