GKN is subject to an 8.1 billion pound (
In comments first reported by the Financial Times, TomWilliams, chief operating officer of Airbus's commercialaircraft division, said it would be "impossible" to give newwork to GKN under a short-term ownership model.
"The industry does not lend itself to shorter term financialinvestment which naturally reduces R&D (research anddevelopment) budgets and limits vital innovation," he said in astatement emailed to Reuters.
"It would be practically impossible for us to give any newwork to GKN under such an ownership model when we don't know whowill be the long-term investor."
Airbus is the biggest customer of GKN's aerospace division,accounting for about a fifth of its total sales.
Melrose's business model is typically to break up companiesonce it has improved their performance, but the group said it isnot a short-termist investor.
Melrose's Chairman Christopher Miller said its approach wasto "invest as if we were to own the business forever".
"Under Melrose, shareholders and customers will be able toenjoy a considered and longer term process of value creation,investment and business enhancement," the chairman said in anemailed statement.
Separately, Melrose has already told British lawmakers thatit will maintain at least the levels of research and developmentinvestment made by GKN between 2014 and 2016.(