GKN, a British automotive and aerospace components company, rejected an unsolicited £7 billion (US$9.6 billion) approach from rival Melrose and announced plans to split in two.
GKN said the Melrose approach was “entirely opportunistic” and undervalued the company, though Melrose responded by saying, “[We believe] that there would be significant operational and commercial benefits arising from Melrose’s ownership of GKN’s businesses, reversing a history of existing GKN management not delivering on margin targets.”
GKN has struggled recently and its profit warning came after a downturn in its US aerospace business. It expects to write down between £80 million and £130 million (US$109.9 million and US$178.6 million, respectively) as the value of stocks at the division had been overestimated.
Full Content: The Guardian
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
TikTok CEO Confident of Overcoming US Ban: ‘We’re Here to Stay’
Apr 24, 2024 by
CPI
EU Conducts First-Ever Raids on a Company Under Foreign Subsidies Regulation
Apr 23, 2024 by
CPI
FTC Moves to Ban Non-Compete Agreements, Aiming to Boost Labor Mobility
Apr 23, 2024 by
CPI
Federal Judge Nods at $418M Deal in Real Estate Antitrust Suit
Apr 23, 2024 by
CPI
Mexican Watchdog Probes Amazon and Mercado Libre Over Loyalty Bundles
Apr 23, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI