GKN rejects £7 billion takeover bid.

Shropshire-based engineering giant GKN has rejected a £7 billion takeover bid.

The offer from Melrose, valuing the business at 405 pence ($5.48) per share, sent shares in GKN up 20 per cent to 398p this morning.

The company has a major operation in Telford and employs about 340 people at Hadley Park making structural parts including wheels.

Employing 58,000 people across 30 countries in aerospace and automotive engineering, 258-year-old GKN stunned the market in October when it cut its profit outlook due to problems in the aerospace division.

The downturn led to the dismissal of the Aerospace head, Kevin Cummings, who had been due to takeover as the future group chief executive in January.

GKN said today it had now appointed Anne Stevens to run the group on a permanent basis after she took up the role of interim CEO in November.

"The board of GKN has considered the proposal ... and has unanimously rejected it, having concluded that the proposal is entirely opportunistic and that the terms fundamentally undervalue the company and its prospects," it said.

Under the UK's takeover rules, Melrose now has until 5pm on February 9 to "put up or shut up" – either announce a firm bid or step away for the next six months, absent any change in circumstances.

GKN will now work on plans to split the business between its aerospace and automotive divisions.

Advertising

It added that it was trading in line with expectations.

Commenting about the appointment of Ms Stevens, chairman Mike Turner said: "The board believes that Anne Stevens has the track record to transform GKN. After a successful turnaround of The Ford Motor Company's businesses in Mexico, Canada and South America, she was appointed as chief operating officer for the Americas where she developed the transformation plan for Ford's US business.

"Her operational and strategic skills are ideally suited to GKN and the board is very impressed with the contribution she has made so far in setting out plans for a significant improvement in the group's performance."




Date: 12 January 2018 | Source: Shropshire Star

More Telford News

 Jimmy Armfield remembered: When England's World Cup squad trained in Shropshire

It’s not a view that would be associated with the modern day international..

 Volunteers sought by health watchdog in Telford

A health watchdog has won a contract to continue its work in Telford and W..

 GKN lifts sales forecast for electric car unit as it fights off Melrose hostile takeover

Engineering giant GKN, which employs more than 300 people in Shropshire, h..

 Top conductor leads school warm-up for classical concert - with video

A Shropshire school welcomed singers from across the Midlands to an ambiti..

 New Telford store turns unwanted goods into support

A social enterprise store in Telford selling unwanted items to support peo..

 Telford woman jailed for stealing £23,000 from employers

A Telford woman has been jailed after she stole more than £23,000 while em..
View More

More UK News

Britney Spears to play Brighton Pride... and Scarborough

The pop singer is taking her Las Vegas show on tour in Europe

Driver behaviour 'transformed' by A90 average speed cameras

Surveys suggest average speed technology between Stonehaven and Dundee has dramatically cut speeding..

Neglect and abuse claims on rise in sheltered housing

UK councils receive more than 30,000 allegations of mistreatment concerning residents, the BBC learn..

Children in England 'deserve better' from healthcare

England has not made the same strides as Wales and Scotland to improve care, a report says

Sky-Fox deal not in public interest, says regulator

The regulator says the deal would give the Murdoch family too much control over news providers in th..
View More

Telford Businesses

Calendar Countdown

[[countdown here]]
[[countdown here]]

Upcoming Events in Telford

22 Apr 2018

12 noon


Ride Out Entry £10.00 per bike including Festival entry (advance tickets only - register here)
Festival Entry £5.00 per person (under 16’s free)

View Details

26 May 2018

Farm Shop and Arthur’s Farm Kitchen: Tues – Sat 9.30am – 5.00pm and Sun 10.00am – 4.00pm

Open Bank Holiday Mondays: 10.00am – 4.00pm


Free entry Some activities and events are chargeable

View Details
View More