Shares in British engineering firm, GKN, have risen after a takeover bid was rejected by the company.
The takeover bid, made by manufacturing turnaround firm, Melrose, valued the company at £7bn.
A statement issued today (Friday 12th January) by GKN reads,
The Board of GKN has considered the Proposal together with its financial advisers, Gleacher Shacklock, J.P. Morgan Cazenove and UBS Limited, and has unanimously rejected it, having concluded that the Proposal is entirely opportunistic and that the terms fundamentally undervalue the Company and its prospects.
Also included in the statement issued today reveals plans to split the aerospace and automotive divisions into separate companies, and that Anne Stevens, currently Interim Chief Executive, agreeing to become the Group’s new Chief Executive with immediate effect.
Isle of Wight base
GKN is located in over 30 countries, and includes manufacturing operations in East Cowes on the Isle of Wight.
GKN Cowes – which has over 1,000 employees – manages the whole product life cycle for high value complex composite structures and sub-assemblies from design, manufacture, test, and certification and aftermarket services.
Whether today’s news will affect the Isle of Wight division is not yet known.
Image: © GKN
