GKN’s takeover defence

TAKEOVER target GKN is expected to lift the lid next week on a major plan to boost profits.

Chief executive Anne Stevens, 69, who was named boss last month, will outline her so-called Project Boost as the engineering firm battles an unwelcome £7.4bn bid from takeover specialist Melrose.

GKN’s share price was knocked late last year by a profits warning and accounting scandal in the US.

However, management hope to show it remains better off under their leadership than Melrose’s stewardship, and are expected to set out detailed plans for each arm of the business.

GKN makes parts for the Black Hawk helicopter, F-35 fighter jet, A400m military plane, as well as parts for Mercedes, BMW and other leading manufacturers. As such, the takeover will need to be approved by the US Committee on Foreign Investment. The UK Government is also under pressure to intervene.

Yesterday GKN bosses said they would consider agreeing to extend the bid deadline to make sure that shareholders know the US’s view on the deal before they make their decision.