Firm doesn’t want to be seen as asset-stripper but blood and thunder aren’t the only things missing from its £7bn bid
In the old days of blood-and-thunder hostile bids, the unveiling of the offer document was a big moment. The bidder would formally throw its cards on the tables, hurl a few choice insults at the target’s management and generally enliven proceedings. Melrose’s £7bn offer for GKN is proving to be lower in energy. That is not just because takeover rules impose greater calm these days. It is also because Melrose’s formal document on Thursday lacked a certain pizzazz.
Everybody knows by now that Melrose’s managers have been stunningly successful in enriching their shareholders (and themselves) in past deals. A pound invested at float in 2003 is now worth £17.70. But the main doubt about the approach to GKN is whether the formula can be repeated on a bigger business with hard-nosed customers like Airbus, Boeing and the big carmakers.
Related: Government backs tighter rules on takeover of UK companies
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