Deals

Melrose Makes $10.2 Billion Hostile Offer to Acquire GKN

U.K. aerospace parts supplier spurned an approach last week
Formal bid comes after meetings with GKN shareholders

Airbus SAS Wing Manufacture at GKN Plc's Aerospace Unit — Photographer: Chris Ratcliffe/Bloomberg

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By Phil Serafino and Benjamin D Katz

January 17, 2018 at 8:17 AM UTC

Updated on

January 17, 2018 at 5:07 PM UTC

This article is for subscribers only.

Melrose Industries Plc made a hostile 7.4-billion-pound ($10.2 billion) bid for GKN Plc, which spurned the approach, setting up a battle to win shareholder support for the deal or the aviation supplier’s own plan to break itself up.

The offer values GKN at 430.1 pence a share in cash and stock, Birmingham, England-based Melrose said in a statement Wednesday. After rejecting an initial approach on the same terms last week and announcing a breakup plan, GKN reiterated today the offer undervalued the company.