Turnaround specialist Melrose locked in a hostile takeover of British engineering firm GKN, said on Monday, February 26, it had received clearance from competition regulators in the United States and Canada for the £7.4 billion (US$10.4 billion) deal.
The move comes after GKN wrote to investors earlier this month to warn over the “entirely opportunistic” takeover bid, saying its inexperienced management team and short-term business model are “inappropriate” for the business.
The group also outlined a new strategic plan, which will see GKN sell off parts of its business to fund a £2.5 billion payout to investors. Melrose has swooped on GKN after profit warnings in October and November following problems at its US aerospace division sent shares tumbling.
GKN, which employs around 58,200 staff and makes wing tips for Airbus, also ditched its incoming boss in November less than two months before he was due to take the top job as it warned over another hit in its troubled US plant.
Full Content: Daily Mail
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