GKN PLC Share News (GKN)

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 business.

The addition now means GKN will receive USD1.77 billion in cash as part of the merger, which was agreed earlier in March.

Under the deal, GKN shareholders will receive 47.3% of the share capital of the newly-formed combined firm Dana PLC - listed in New York and London - after completion, which is unchanged, as are all other terms of the transaction.

GKN is currently fighting off a takeover bid from FTSE 250-listed turnaround specialist Melrose Industries PLC, which raised its offer for GKN earlier in March to GBP8.4 billion from the initial GBP7.1 billion announced in January.

GKN shareholders are due to make their decision on the future of the company on Wednesday.

Chairman Mike Turner commented: "I welcome Dana's announcement today. This transaction, which along with project boost was initiated prior to the Melrose bid, offers by far the best strategic route forward for GKN Driveline.

"The challenges and opportunities of electrification mean that consolidation is required. By moving now, the Dana-GKN Driveline combination will be strongly positioned to be a global leader in this field."

GKN, an automotive and aerospace engineer, on Monday also said comments quoted in the Sunday Telegraph and Sunday Times newspapers over the weekend by Chief Executive Anne Stevens and Finance Director Jos Sclater concerning shareholder support could not be verified, and have been withdrawn.

Stevens and Slater, GKN said, stated they were confident of shareholder support, and that shareholders are "mostly" supportive of existing management.