GKN is continuing to reject a proposed bid from turnaround specialists Melrose Industries to buy out the aerospace and automobile manufacturing company, claiming that the terms of the “derisory” official offer proposed on 1 February have not changed since the planned takeover was first announced in mid-January.
The hostile takeover bid announced on 17 January has resulted in much back and forth between the two companies, and a new official offer proposing GBP0.81 (USD1.14) per cash share, plus 1.49 new Melrose shares, to the current shareholders of GKN, has further fuelled this tension.
This offer, according to Melrose, will result in a share value of GBP3.37 based on its closing share price of GBP2.26 on 31 January, which alongside the GBP0.81 per cash share represents a GBP4.18 value per GKN share.
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