GKN: refuses Melrose approach once again
(CercleFinance.com) - The British automotive and aerospace supplier GKN has again rejected the approach from its peer Melrose, even though it raised its bid.
At 446 pence this morning in London, the GKN share is trading 3.7% above Melrose's offer.
Yesterday, the Melrose Industries holding company formulated a new mixed offer valuing the GKN share at 81 pence in cash, plus 1.49 Melrose shares to issue. Based on the share's price of 16 January, this values the GKN share at 430.1 pence, calculates Melrose, and therefore all the issued capital at 7.4 billion pounds sterling. This represents a premium of 32% on the share price after the first news of this project on 5 January.
As GKN's stockmarket valuation is significantly higher than Melrose's bid, GKN's shareholders would own 57% of the new group, giving them some weight in talks.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
At 446 pence this morning in London, the GKN share is trading 3.7% above Melrose's offer.
Yesterday, the Melrose Industries holding company formulated a new mixed offer valuing the GKN share at 81 pence in cash, plus 1.49 Melrose shares to issue. Based on the share's price of 16 January, this values the GKN share at 430.1 pence, calculates Melrose, and therefore all the issued capital at 7.4 billion pounds sterling. This represents a premium of 32% on the share price after the first news of this project on 5 January.
As GKN's stockmarket valuation is significantly higher than Melrose's bid, GKN's shareholders would own 57% of the new group, giving them some weight in talks.
Copyright (c) 2018 CercleFinance.com. All rights reserved.