Buy, improve, sell Melrose is an expert at buying, improving and then selling underperforming engineering companies, like GKN (LON:GKN), which the group finally acquired after a protracted takeover ba...
Melrose announced on Friday that it has now acquired, unconditionally contracted to acquire, or received valid acceptances, of its offer for GKN in respect of more than 90% of the value of the GKN shares to which the offer related, and more than 90% of the voting rights carried by such shares.
(WebFG News) - Melrose Industries said its priority was tackling an "unacceptable" performance from GKN's aerospace division after profit and cash generation across the group came in below market expectations in the three months leading up to the completion of its £8bn takeover last week.
Melrose Industries said an early review of GKN confirmed its potential for improvement as Melrose's £8bn offer for the engineering company became unconditional.
Melrose Industries still had not received acceptances from 15% of GKN shareholders for its takeover after its midday deadline on Wednesday, though it said the offer will become unconditional in all respects at 0800 BST the following day.
GKN's remaining shareholders have until Thursday to accept the takeover offer from Melrose Industries as the turnaround specialist's offer will soon be declared wholly unconditional.
GKN shareholders have accepted turnaround specialist Melrose Industries' £8.1bn bid for the engineer, ending a two-and-a-half month saga that has involved intervention from the government and countless tit-for-tat exchanges between the two companies.
Melrose Industries and GKN engaged in a final public slanging match before a shareholder vote on the turnaround company's hostile bid for the FTSE 100 engineer.
Melrose Industries has written to the government setting out commitments in a final push to win approval for its hostile bid for GKN.
GKN has received an increased cash offer for its Driveline business from US-based Dana, while also being forced to retract directors' statements quoted in Sunday newspapers about the hostile takeover bid from Melrose Industries.
In its second instalment of the day, turnaround specialist Melrose Industries said a story published by Mergermarket on Thursday suggesting that it was confident of meeting the 50.1% minimum threshold for shareholder acceptances should be disregarded.
GKN has written to its shareholders urging them not to back Melrose Industries' hostile takeover bid, describing the turnaround specialist as an unsuitable steward of the company.
GKN branded Melrose Industries a novice operator with no plan, in the latest round of accusations between the companies locked in a hostile bid battle.
One of the most intense games of corporate ping-pong continued apace on Tuesday, as GKN responded to Melrose's latest allegations over its UK pension schemes.
Further to its announcement on 9 March about the proposed combination of Dana Incorporated and GKN Driveline, Dana announced on Monday that the new combined business will hold a standard listing on the London Stock Exchange, in addition to being listed on the New York Stock Exchange.
GKN's largest customer, Airbus, has suggested it would withdraw custom from the FTSE 100 engineer in the event of the proposed hostile takeover by Melrose International.
Melrose Industries has sought to reassure MPs about its proposed hostile takeover of GKN by proposing binding commitments on research, pensions and other matters of political concern.
US-based auto parts giant Dana Inc could list its shares in London as a condition of its $6.1bn acquisition of GKN's power train business.
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Turnaround specialist Melrose Industries has upped its offer for engineer GKN to 467p per share, or £8.1bn, from £7.4bn.