Deals
GKN Loses Fight Against Melrose’s $11 Billion Hostile Offer
- Melrose says that 52 percent of shares came out in favor
- Outcome caps two-month takeover battle for engineering firm
An employee works on a trailing wing edge of an aircraft at GKN Plc's factory in Filton.
Photographer: Chris Ratcliffe/Bloomberg
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U.K. engineering company GKN Plc lost a hard-fought battle for independence after shareholders opted for a 8.1-billion-pound ($11.2 billion) offer from Melrose Industries Plc in a takeover that attracted scrutiny from government, a key customer and unions.
Melrose received 52 percent of voting rights for its cash-and-stock bid, the turnaround specialist said in a statement on Thursday, sending GKN shares to a record. A separate deal struck by GKN to sell its automotive driveline division to U.S.-based Dana Inc. for $6.1 billion will now fall by the wayside.