Tuesday, 27 March 2018

Melrose in series of pledges ahead of GKN investor takeover vote.

Melrose (LSE: 136541.L - news) , the company behind a hostile takeover bid for engineering firm GKN (Frankfurt: 694194 - news) , is facing Government demands for a series of commitments on the engineering group's future.

Ahead of a deadline of lunchtime on Thursday for a majority of GKN investors to accept Melrose's £8.1bn offer, it has been revealed Business Secretary Greg Clark has written to the turnaround specialist to outline several concerns.

Chief (Taiwan OTC: 3345.TWO - news) among them is a question mark about long-term investment and ownership - given GKN's standing, its work in UK defence and Melrose's usual operating model of restructuring and selling for a profit.

Mr Clark wrote: "I recognise that any listed company may be subject to future takeover and so cannot guarantee its ownership indefinitely.

Sky News.

Full story at Yahoo News.

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