GKN rejects £7bn hostile approach from rival Melrose

Vince Cable attacks bid but turnaround specialist Melrose plans to pursue interest as GKN unveils moves to split automotive and aerospace divisions

GKN, the FTSE 100 aerospace and automotive company which issued a shock profit warning in November, has rejected an unsolicited £7bn approach from rival Melrose and announced plans to split in two.

A bid battle is now likely as Melrose, which specialises in buying struggling businesses, turning them round and selling them at a profit with the proceeds given back to shareholders, will pursue its interest despite GKN’s opposition.

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Source: theguardian
GKN rejects £7bn hostile approach from rival Melrose