Credibility gap, gung-ho Melrose investors, panicked breakup plan and tepid political reaction led to bid being accepted
On day one of Melrose’s bid for GKN in January, everybody in the City knew one thing. GKN, a 259-year old company that made cannonballs for Waterloo and Spitfires in the second world war, was doomed if its management mounted a defence based on its recent financial record.
GKN had disappointed its shareholders too often and three months previously had confessed to discovering a pile of overvalued stock in its US aerospace division. Credibility was low and GKN was up against a takeover specialist with a big City fanclub and a keen sense of when to pounce. As Melrose’s chairman, Christopher “Jock” Miller, volunteered, his firm had been watching GKN for years. The bidder was ready for action; the target wasn’t.
Related: GKN shareholders accept Melrose's £8bn hostile takeover
GKN is a global engineering business based in Redditch, Worcestershire. It employs nearly 60,000 people across 30 countries.
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