Melrose increases offer for Britain's GKN to $10.2 bln

Reuters

Melrose Industries Plc made a sweetened, 7.4-billion-pound ($10.2 billion) bid for GKN Plc, seeking to win over the United Kingdom maker of aerospace and automotive components after it spurned an earlier unsolicited approach.

Melrose said its new proposal represents a 29% premium to the closing price of GKN's closing price of 332.7p on January 11.

Melrose appealed directly to GKN's investors to back its earlier 7 billion pound takeover offer after GKN's board rejected it.

Melrose said that acquisition would "re-energise" GKN's operations to deliver "significantly greater benefits to the shareholders of GKN than GKN could otherwise achieve on its own".

Under the terms of the offer, GKN shareholders would own 57% of the enlarged group and, according to Melrose, would become "major participants in the potential future value creation in both the GKN and Melrose businesses".

Melrose had said on Friday that it believed there would be significant operational and commercial benefits arising from its ownership of GKN's businesses.

The second approach reflects a rise in Melrose's own share price since it first announced its interest in GKN.

Lambro: Trump feels pressure to get Dreamer deal done
He said that without DACA, he would have to hide in the shadows simply for not having a paper document that allows him to work. The program applies to people who arrived in the U.S.as children and live here illegally.

We'll keep control of Catalonia if Puigdemont tries to govern remotely - Spain
The Parliament is also waiting for to see if exiled -former leader Carles Puigdemont will be allowed to return for re-election. In a first for Catalonia , a party that fiercely opposes independence was the most voted and gained the most seats.

Democrats accuse Trump administration official of "amnesia" on president's vulgarity
Booker's feigned emotional breakdown over a word he has heard many times as mayor of Newark was laughable. However, "I don't dispute that the president was using tough language", Nielsen said.

The unsolicited takeover bid for one of Britain's oldest companies comes after Melrose sought to woo GKN shareholders this week in an effort to garner support for a deal.

Shares in vehicle and plane part maker GKN rose by 1.3% on Wednesday morning, although they have subsequently lost most of that ground. Pressure mounted after a profit warning in October and a writedown in November.

Melrose believes it can "re-energise and re-purpose" GKN's operations to boost its margins after the engineering firm issued two profit warnings towards the end of previous year.

Melrose chief executive Simon Peckham said in a statement: "The real value uplift will come from merging the interests of the two sets of shareholders and creating a business valued at approximately £11bn today".

"We have already stated that the terms of Melrose's offer fundamentally undervalue the company and we are actively engaging with shareholders to explain how our transformation plan will provide value".

It had previously expected to write off £15 million on its Alabama facility, relating to "revised assumptions" on programme inventory and receivables balances, which sparked a wider review across the division.

Related News:



Most liked

Android Malware Could Steal Messages From WhatsApp
It is spread through web pages mimicking leading mobile network operators, such as Three and Vodafone. Through that, it can connect with other affected devices to Wi-Fi networks controlled by hackers.

France says Bayeux Tapestry loan to Britain 'not before 2020'
The Bayeux Tapestry was subject to a number of tests before the move was agreed to ensure it would be safe to transport. If it returns to the United Kingdom , medieval historians would finally have the chance to study the back of the work.

Thankful Bengals fans give to Bortles charity
Bengals fans haven't quite matched that yet, but any amount is welcomed by Bortles and his BB5 Foundation. Beating the Pittsburgh Steelers has paid off for Jaguars quarterback Blake Bortles in more ways than one.

Federer begins Australian Open title defence with win
Federer sealed the victory when Bedene served to stay in the set, a backhand into the net ending a one-sided contest. Federer replied with an unreturnable serve out wide and an outrageous down-the-line forehand to close the idea down.

Will Ferrell interviews Roger Federer after Australian Open win
"Look, I've got shivers", said Sharapova , pointing to her arm when asked on court how much being back in Melbourne meant to her. Wawrinka , who had six months out after surgery on his left knee, beat Ricardas Berankis 6-3, 6-4, 2-6, 7-6 (7-2).

Sony's New Flagship Handset Rumored To Feature 4K Display
Additional features may include 128GB of internal storage, a microSD card slot, a 3,420mAh battery as well as Android 8.0 Oreo. There are rumors going around that Sony is working on a flagship or two with an organic light-emitting diode ( OLED ) display.

Predicted Chelsea lineup against Norwich: Batshuayi, Ampadu to start; Fabregas, Cahill injured
Every single player must have this desire, this will to learn and improve, and to put yourself in contention. But this is our job and we must be happy because it means we are playing for all competitions".

SERAP asks Buhari to summon US envoy over Trump 'shithole' slur
Graham shared a statement on Friday which said: "Following comments by the President, I said my piece to him directly yesterday". Mr Trump announced a year ago that he will end the Obama-era DACA program unless legislators come up with a solution by March.

Pogba reminds fans why he has to be Mourinho's main man
But the biggest swing is the assists , with Pogba's nine coming in significantly fewer games than De Bruyne's. Keep playing, it's not up to us, it's not down to us.

Land Rover Defender returns with one last special edition
Inside, Land Rover will give all examples full Windsor leather extending to the dash, door cards, headliner and seats. Both wheelbases and bodystyles can be converted into Works V8s.

Rand Paul says Trump's remarks weren't helpful but also defends him
However, Republicans and Democrats have both said they either heard Trump say it, or heard directly from colleagues who did. And he says the IL senator is threatening prospects for a deal to protect certain immigrants.

Meghan Markle deletes ALL her social media accounts
The film will be directed by Menhaj Huda ( The Royals ) with a script that has been written by Scarlett Lacey. Merideth Finn and Michele Weiss ( Flowers In the Attic ) will be executive producers.

Update on fatal crash near Dubbo, NSW
NSW Police Superintendent Peter McKenna said all vehicles involved in the crash were travelling in the same direction. NSW Roads Minister Melinda Pavey said any new technology that can help road safety should be considered.

Facebook Set to Declutter Messenger
Facebook is responding to feedback about the app that has spiraled from a messenger app to a little bit of everything. He also revealed that there were 17 billion video chats on Messenger in 2017 - two times as many as compared to 2016.

Samsung Galaxy On7 Prime launched, starts at INR 12990
The company has not revealed the operating system of the smartphone but it is expected that it will run on Android 7.1.1 Nougat. Since these two phones have been around for a while even in the Indian market, the specs and features etc. are already known.