The CEO of Dana is in the UK this week meeting with large shareholders in GKN to put the case for its deal over that of the hostile bid from investor group Melrose Industries.
GKN’s board agreed a deal late last week to merge its driveline division with Dana.
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Melrose responded with an increased offer for GKN shares that it said was ‘final’. GKN’s board rejected the final offer and said it does not reflect the benefits that would come from combining GKN Driveline’s business with Dana. It also said the offer does not reflect the value of GKN’s aerospace business.
James Kamsickas, Dana’s CEO, is reportedly in Britain this week to meet with major GKN shareholders and persuade them of the merits of the Dana deal.
GKN investors have until March 29 to accept Melrose’s ‘final offer’. GKN’s plan would give them a 47.25 percent stake in New York-listed Dana.
GKN pension plan trustees have also come into conflict with Melrose this week, saying that it has not addressed their concerns in discussions that have taken place. Melrose responded that it has demonstrated that it is an ‘exemplary custodian’ of pension schemes.
