Melrose Industries has increased its offer to acquire GKN plc by around 10%, valuing the company at £8.1 billion. Following an initial proposal from Melrose to acquire GKN in January 2018, both companies have since launched campaigns to convince GKN shareholders of their respective plans for the group, with both parties looking to sell the Powder Metallurgy business and, more recently, GKN’s plans to combine the Driveline division of GKN plc with the US-based Dana International to create Dana plc.
Melrose has declared its offer as ‘final’, stating the bid will not be increased under any circumstances. Under the revised offer, GKN investors would receive 81p in cash plus 1.69 new Melrose shares for each GKN share. The previous offer made in January was for 81p cash plus 1.49 new Melrose shares per GKN share.
GKN’s board unanimously rejected the new bid, stating that Melrose continued to fundamentally undervalue the company and its prospects. The deadline for a decision from GKN shareholders on Melrose’s new offer is March 29, 2018.