BUYOUT TOO CHEAP, SAYS GKN

Engineering giant GKN has stepped up its defence against a £7.4billion takeover by making a fresh appeal to its shareholders.

Bosses branded an approach by restructuring firm Melrose as “entirely opportunistic” and criticised the firm’s management. “The Melrose offer is not a good deal – it is low price and high risk,” said the letter signed by GKN chairman Mike Turner.

He also pointed out Melrose had paid “materially higher premiums in each of its prior public takeovers”.

GKN shareholders are being offered a 22% premium, compared to a Melrose average of 43%.

And Turner questioned if Melrose had the experience to deal with GKN’s big customers which include Airbus, Boeing and Ford.

GKN is planning a £2.5bn payout to its investors to get them onside.