Takeover tactics

I HOPE the hostile bid by Melrose for GKN can be thwarted. Having been on the receiving end of similar takeovers, the pattern is the always same: acquire a company as cheaply as possible, promising major improvements, cut costs to improve the short-term bottom line and sell on within three years.

This strategy benefits only the acquirer, who gets the profit by cutting staff, investment, training and marketing.

MIKE GANLEY, Heywood, Lancs.