MP: Block GKN bid to protect UK security

THE hostile takeover of British defence giant GKN should be blocked on the grounds of national security, the head of an influential Commons committee said yesterday.

Labour MP Rachel Reeves spoke out after GKN’s top customer, Airbus, said it would find it ‘practically impossible’ to work with the firm if a £8.1billion bid by Melrose succeeded.

The Government is considering blocking the bid over GKN’s work on defence projects such as the US-UK joint strike fighter and the Eurofighter Typhoon. The Daily Mail is also opposing it with its Save GKN campaign.

Last night, major GKN share- holder Lancaster Investment Management, which has 1 per cent of the firm’s stock, came out against the bid by Melrose, which buys firms, slashes costs and sells them at a profit.

It comes after Jupiter Asset Management, which also holds 1 per cent, rejected the offer.

Miss Reeves, chairman of the Commons business, energy and industrial strategy committee, heard from GKN and Melrose at a hearing last week.

She said: ‘There is a strong case for calling in this takeover on grounds of national security because GKN does supply Airbus and Rolls-Royce, who have defence contracts.’

Melrose chief executive Simon Peckham says it is committed to matching GKN research and development spending, and keeping its HQ in Britain.