GKN is splitting its aerospace and automotive businesses in an effort to resist an unwelcome takeover approach from turnround specialist Melrose Industries that values the company at £8bn including debt.
Shares in the FTSE 100 group soared on the back of the approach from Melrose, which has proposed an offer made up of 80 per cent equity and 20 per cent cash. The proposal values GKN at 405p a share, based on Melroses closing price on January 5. GKN shares jumped 26 per cent to 419p, while shares in Melrose closed 5 per cent higher at 226.5p.
GKNs board dismissed the proposal as entirely opportunistic and said the terms fundamentally undervalue the company and its prospects.
However Melrose said that under its ownership, GKN…
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