Melrose ups offer for GKN as acceptance deadline looms

London stocks have reversed gains seen at the open

London stocks have reversed gains seen at the open

Melrose has increased its hostile bid for GKN and told shareholders in the United Kingdom engineering firm that it will be its "final offer".

According to Melrose, its recent attempts to engage in "constructive discussions" with GKN had been blocked.

GKN announced the terms of the Driveline deal last week which would see Dana shareholders own 52.75% of the company and GKN the remainder, with the combined company set to be domiciled in the United Kingdom but traded on the New York Stock Exchange. It has offered to give back £2.5bn to shareholders and agreed to merge its auto unit with USA company Dana.

That is compared with the £7.4 billion bid previously put forward by Melrose, which is now offering GKN shareholders a total of £1.4 billion in cash and the chance to own a 60% stake in Melrose.

As of 08:11 GMT, GKN's share price had added 1.75 percent to 442.70p, outperforming the benchmark FTSE 100 index which now stands 0.18 percent higher at 7,237.72 points.

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Microsoft's Xbox One was left out of the list, which like we said isn't surprising given Sony's past reluctance . They added a post later explaining that, yes, the Xbox One is a part of that same functionality.

The turnaround specialist said that the offer was final and would not be increased.

Christopher Miller, chairman of Melrose, described the tie-up with Dana as a "bad deal" in a letter to GKN shareholders and accused the GKN board of attempting a "hasty fire sale".

Also on Monday, GKN issued its latest defence against the Melrose approach.

Melrose's share price meanwhile has slipped into the red and is now 0.76 percent lower at 223.00p, as compared with a 0.32 percent gain in the mid-cap FTSE 250 index.

The FTSE 100 group's investors have until 13:00 GMT on March 29 to accept the current offer, which, Melrose noted, "will not be increased under any circumstances".

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