Having rejected a £7.4bn hostile takeover bid earlier this week, engineering giant GKN is now rejecting several of the key statements made by Melrose Industries at the time of the bid.
Melrose stated that the terms of its offer represented a premium of approximately 32% over the closing share price of GKN on the last business day prior to the approach.
The GKN board considers 32% to be a fake premium and points out that Melrose’s market capitalisation at the time of the bid was significantly smaller than GKN’s on the same day,
In a statement to the stock market GKN said: “Melrose is proposing to fund 80% of the offer consideration in shares and Melrose brings no industrial synergies. Instead, GKN’s shareholders are themselves funding the majority of this premium. The true, delivered premium is less than 11%”
The GKN board also contested what it saw as an implication from Melrose that GKN wanted a "hasty break-up" of its businesses.
GKN which makes wing tips for Airbus and parts for car manufacturers including Mercedes and Jaguar Land Rover, earlier this year said it intended to separate its aerospace and automotive units