GKN's board has stepped down following the controversial takeover by investor group Melrose Industries, which has reportedly been waved through by the UK government, concluding that it raised no national security concerns (on the defence side of GKN's business).
GKN CEO Anne Stevens and chief financial officer Jos Sclater, as well as chairman Mike Turner and the rest of GKN's board stepped down today, with directors from Melrose taking on interim board roles. The interim directors will stay in place until GKN's shares are cancelled and the business delists as it merges with Melrose, a move expected in mid-May.
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GKN announced in a statement that its board was stepping down with Melrose Industries' takeover offer having become unconditional. "The outgoing Board now recommends that GKN shareholders who have not yet done so accept the Offer," GKN said in the statement.
Melrose said an "in-depth review" was now under way and had confirmed the "extent of the opportunity to improve GKN's business".
Some reports suggests that some further assurances are being sought by the UK government (related to defence contracts and the aerospace business) but that the go-ahead from the UK government is set to be formally given.
In a ballot of GKN shareholders Melrose won control of GKN with the support of 52.43% of shareholders.
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By GlobalDataSee also: Melrose wins control of GKN
