GKN in talks to sell its cars division to US ally

HOSTILE takeover target GKN was last night revealed to be in talks to sell its automotive business to an American ally.

In a move designed to stop the firm being taken over by asset-strippers Melrose – who have launched a £7.4bn takeover swoop – GKN is understood to have held discussions with Dana Corporation.

Dana, which is valued at £2.8bn, has worked closely with GKN on car technology projects in the past.

It is believed to be considered by GKN as a better alternative to Melrose, whose bid GKN claims significantly undervalues the business. Melrose aims to sell firms on within three to five years. GKN, which employs 58,000 around the world, including 6,000 in the UK, declined to comment.