Less Ads, More Data, More Tools Register for FREE

Pin to quick picksGKN PLC Share News (GKN)

  • There is currently no data for GKN

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Moody's Places GKN Rating Under Review For Downgrade After Melrose Bid

Wed, 04th Apr 2018 14:39

LONDON (Alliance News) - Moody's Investors Service on Wednesday put the Baa3 senior unsecured debt and programme ratings for GKN PLC under review for a potential downgrade.

Shares in the FTSE 100-listed engineering firm were down 2.8% at 433.70 pence on Wednesday.

The ratings agency's review for downgrade stems from the accepted takeover bid for GKN by FTSE 250-listed turnaround specialist Melrose Industries PLC, which though still subject to certain regulatory and antitrust approvals is expected to become unconditional by April 19.

The review will focus on the impact of Melrose as GKN's future shareholder, which will be dependent on the final acceptance level of the bid, the proposed refinancing of GKN's debt by Melrose, as well as the the FTSE 100-listed firm's future business profile.

In particular, the review will look at the percentage of shareholding that Melrose will hold in GKN, and the execution of the refinancing of financial debt.

Moody's did note that due to the weak positioning of the rating, an upgrade of GKN is unlikely, however it would consider an upgrade to Baa2 if there is clear visibility that GKN could improve its credit strength.

"Our review for downgrade stems from the takeover bid of Melrose, which has now been accepted by the majority of GKN's shareholders, and the related uncertainties about GKN's future shareholding structure, capital structure and business profile. GKN's rating is already weakly positioned on a standalone basis. Our review will focus on the impact of Melrose as GKN's future main shareholder, which will depend on the final acceptance level of the bid, the proposed refinancing measures of GKN's debt by Melrose, and GKN's future business profile," said Senior Credit Officer Matthias Heck.

More News
29 Mar 2018 00:01

Fate of GKN hangs in balance as investors decide on Melrose bid

By Ben Martin LONDON, March 29 (Reuters) - The three-month battle for GKN will be decided on Thursday when the deadline for shareholders to accept Melrose 8 billion bid

Read more
28 Mar 2018 17:53

Deutsche Bank Lowers Stake In GKN Below Notifiable Threshold (ALLISS)

LONDON (Alliance News) - GKN PLC said Wednesday German banking giant Deutsche Bank AG lowered its stake in the FTSE 100-listed engineer to below the notifiable threshold after

Read more
28 Mar 2018 13:29

UPDATE: GKN Attacks "Desperate" Commitments From Melrose Amid Offer

LONDON (Alliance News) - GKN PLC said Wednesday commitments provided to the UK government by Melrose Industries PLC with regards its hostile GBP8.4

Read more
27 Mar 2018 14:44

UPDATE: Melrose Has Made No Commitments Over Driveline Future - GKN

LONDON (Alliance News) - GKN PLC on Tuesday said the need for the UK government to intervene and seek commitments from Melrose Industries PLC over its bid

Read more
27 Mar 2018 14:20

UK awaits security advice before any intervention in GKN deal -minister

LONDON, March 27 (Reuters) - Britain's business minister Greg Clark said on Tuesday he would follow expert advice from the defence ministry and others

Read more
27 Mar 2018 11:22

UPDATE 1-Melrose makes 5-yr commitment to GKN's aerospace arm after government intervenes

By Kate Holton LONDON, March 27 (Reuters) - Melrose on Tuesday committed to a five-year ownership of GKN's Aerospace division if it succeeds in its hostile bid for

Read more
27 Mar 2018 08:54

TOP NEWS: UK Seeks Binding Commitments From Melrose Over GKN Bid

LONDON (Alliance News) - The UK government has sought several commitments from Melrose Industries PLC over its GBP8.4 billion hostile bid a

Read more
27 Mar 2018 07:55

Melrose commits to five-year ownership of GKN's Aerospace division

LONDON, March 27 (Reuters) - Melrose on Tuesday pledged to own the Aerospace division of its bid target GKN for at least five years and to increase funding in apprenticeships

Read more
26 Mar 2018 17:54

UPDATE 1-FTSE ends at 15-month low

* FTSE 100 down 0.4 pct * Fresnillo jumps pct on Goldman upgrade * Smurfit Kappa rejects revised International Paper bid * JD Sports rises on Finish Line

Read more
26 Mar 2018 11:44

UPDATE: Melrose Industries Attacks GKN After Dana Boosts Merger Offer

LONDON (Alliance News) - Melrose Industries PLC reiterated its belief it is time for a change of leadership at GKN PLC, soon after Dana Inc increased its merger offer for by a

Read more
26 Mar 2018 09:48

FTSE 100 rebounds, but still shy of 7,000, as trade fears ease

(For a live blog on European stocks, type LIVE/ in an Eikon news window) * FTSE 100 up 0.4 pct * Fresnillo jumps 3.7 pct on Goldman upgrade * Smurfit Kappa rejects revised JD

Read more
26 Mar 2018 08:02

TOP NEWS: Dana Increases Driveline Merger Offer By USD140 Million

LONDON (Alliance News) - GKN PLC said Monday Dana Inc has added USD140.0 million to the proposed combination between the company and GKN's Driveline now GKN

Read more
26 Mar 2018 07:46

UPDATE 1-Dana ups cash offer by $140 million in hotly contested fight for Britain's GKN

LONDON, March 26 (Reuters) - U.S. group Dana Inc agreed to increase its offer for GKN's Driveline business by $140 million in cash as 5

Read more
26 Mar 2018 07:43

UPDATE 1-UK Stocks-Factors to watch on March 26

March 26 (Reuters) - Britain's FTSE 100 index is seen opening 22 points lower at 6,900 on Monday, according to financial bookmakers, with futures 0.1 percent lower ahead a

Read more
26 Mar 2018 07:22

Dana ups cash offer in hotly contested fight for Britain's GKN

LONDON, March 26 (Reuters) - Auto components maker Dana Inc said on Monday it had agreed to increase its offer for GKN's Driveline business by $140 million

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.