Email Facebook Twitter

Exclusive: Hardman & Co call the lithium market: is a change in trend happening?
Tower Resources identify 18 million barrels of contingent reserves worth $118M in Cameroon

ShareCast News

Unite urges government to block 'predatory' Melrose bid for GKN

Fri, 12th Jan 2018 15:09

(ShareCast News) - Unite has urged the government to block what it called a "predatory" and "destructive" takeover bid for engineer GKN by turnaround specialist Melrose Industries.

The Unite union said on Friday that ministers need to toughen up UK takeover rules so that national and social interests are prime factors in any decision rather than the depth of a hostile bidder's pockets. This came after GKN said earlier that it had rejected a 405p per share offer from Melrose, saying it was "entirely opportunistic" and "fundamentally" undervalues the company.

The union urged shareholders to hold firm, warning that the bid was not in the long-term interest of GKN and could result in the company's assets being stripped. Unite, which is the main union representing workers across GKN's automotive, aerospace and R&D divisions, warned government ministers that any hope of a coherent industrial strategy would lie in tatters if the Melrose bid was allowed to succeed.

Assistant general secretary for manufacturing, Tony Burke, said: "The only interests this predatory takeover bid are in, are those of the speculators looking to turn a quick buck. Government ministers need to step in and block this bid and toughen up UK takeover laws.

"Takeovers need to be decided on more than just how much money a hostile bidder can throw at shareholders. The impact on communities and the national interest need to be main deciding factors in takeover bids as is the case in countries such as Holland.

"If Melrose's bid is successful it will blow a hole in the government's hope of developing a coherent industrial strategy and signal that government ministers are happy to see yet another British company fall prey to vulture capital."

Unite said it is in close dialogue with GKN executives and its shop stewards will be meeting next week with their European counterparts to agree a coordinated response to stop a takeover.

Related Shares:

Back to ShareCast News

Share Price, Share Chat, Stock Market news at
FREE Member Services
- Setup a personalised Watchlist and Virtual Portfolio.
- Gain access to LIVE real-time Regulatory News (RNS).
- View more Trades, Directors' Deals, and Broker Ratings.
Share Price, Share Chat, Stock Market news at

Datafeed and UK data supplied by NBTrader and Digital Look. While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.