FILE PHOTO: Branding is seen outside the headquarters of GKN in Redditch, Britain, March 12, 2018. REUTERS/Hannah McKay/File Photo
March 29, 2018
By Ben Martin
LONDON (Reuters) – Melrose Industries <MRON.L> has narrowly clinched an 8 billion-pound ($11 billion) takeover of British engineer GKN <GKN.L>, after a three-month battle for control of the FTSE 100 company.
The UK-based turnaround specialist said on Thursday that 52.4 percent of GKN’s shareholders had accepted its hostile cash-and-shares offer by the time the deadline for a deal expired at 1200 GMT.
That just surpassed the acceptance threshold of 50 percent plus one share that Melrose had set for the takeover of the aerospace and automotive parts supplier.
It means Melrose has triumphed with Britain’s biggest hostile bid since Kraft pounced on confectionery giant Cadbury in 2009.
GKN, led by chief executive Anne Stevens, had put up a staunch defense that included striking a separate deal to merge its autos division with U.S. firm Dana <DAN.N>, a tie-up that was dependent on the failure of the Melrose takeover.
“We are delighted and grateful to have received support from GKN shareholders for our plan to create a UK industrial powerhouse with a market capitalization of over 10 billion pounds and a tremendous future,” said Christopher Miller, Melrose’s chairman.
Its offer is now expected to become unconditional by April 19.
($1 = 0.7128 pounds)
(Reporting by Ben Martin; Editing by Adrian Croft and Mark Potter)
