Investor company Melrose has issued a 'final offer' as part of its hostile bid to take control of GKN. The latest bid has been increased by around 10%.

It said that all recent attempts to engage in constructive discussions have been refused by the GKN board and that a proposed tie-up between GKN and Dana is 'in our view, a bad deal for other stakeholders'.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Melrose said the new offer (81 pence plus a 1.69 new Melrose share for each GKN share) won't be increased under any circumstances. The deadline for acceptances is 1.00 p.m. on Thursday, 29 March. The previous offer – described by GKN as 'derisory' – was 81 pence plus 1.49 new Melrose shares.

GKN said in response it was evaluating the new offer.

Melrose said in a letter from its chairman that GKN shareholders can join it on a 'journey of value creation by investing in a UK listed manufacturing powerhouse worth over £10 billion today and receiving £1.4 billion of cash.'

See Also:

It described the board of GKN as attempting a hasty fire-sale of GKN businesses before they have been given a chance to reach their potential and 'with damaging consequences, we believe, for all stakeholders'.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The potential transaction with Dana, Melrose maintains, leaves GKN shareholders with a minority stake in a foreign listed group run by a Dana management team based in Ohio. 'Many of you may not be able to hold the shares being offered by Dana as part of the consideration as they will not be listed in the UK,' it said.

Melrose also warned that private UK shareholders should also be aware that they would be liable to income tax on the value of any new Dana shares they receive and the transaction would 'involve a lengthy and uncertain completion process, including anti-trust clearances in the EU, US and China, as well as Dana's shareholder approval, which is not expected until the last quarter of 2018'.

See also: Dana and GKN Driveline sign agreement for merger