March 9 (Reuters) - Britain's GKN said it had agreedto merge its automotive business with Dana Incorporatedto create Dana Plc, adding the deal provided "significantlygreater value" for its shareholders than Melrose Plc's7 billion pound ($9.68 billion) hostile bid.
The proposed deal gives GKN Driveline a total enterprisevalue of $6.1 billion, equal to a 2017 enterprise value to coreearnings multiple of 7.5 times.
"The board of GKN believes the proposed transaction,together with the prospects for GKN Aerospace, providessignificantly greater value for GKN's shareholders than theMelrose offer," GKN said.($1 = 0.7235 pounds)(Reporting by Noor Zainab Hussain in Bengaluru; Editing byAdrian Croft)