Neil DennisShares in engineering group GKN recovered some poise on Monday following a profit warning nearly two weeks ago as investors mulled the possibility of the company splitting into two businesses.
Our conversations with investors suggest that a scenario in which GKN becomes an aerospace pure-play was the favoured potential outcome
by Wasi Rizvi, analyst at RBC Capital Markets
Reports in the UK weekend press followed a Sunday Times report that GKN was in the early stages of considering break up to form separate aerospace and automotive businesses.
Wasi Rizvi, analyst at RBC Capital Markets said: "Our conversations with investors suggested that a scenario in which GKN becomes an aerospace pure-play was the favoured potential outcome."
Market reaction
Shares in GKN were up 3.3% to 313.8p in mid morning trade in London.