GKN shareholders will vote on Melrose's offer on March 29, which is Thursday next week.
"Our shareholders have an important choice to make, and we believe an independent GKN is the right choice," Chief Executive Officer Anne Stevens said. "We are confident our new strategy will maximise the value of GKN and we are working with urgency to deliver it."
"In scale and nature, GKN is completely different from any business Melrose has ever bought," Stevens added. "Melrose lacks the knowledge and experience to manage GKN successfully and has absolutely no plan for the business. Melrose is the high-risk choice. Melrose's offer does not come close to reflecting GKN's true value and I urge shareholders to reject it."
GKN sought to counter statements made by Melrose since its original offer was first made in January. These included comments on its Aerospace strategy, research and development expenditure, company management and pensions as well as the potential benefits and pitfalls of its deal to merge its automotive business with
Earlier in March, GKN reached an agreement to combine its automotive Driveline business with Dana in a
GKN argued that rather than being a "hasty and ill-thought-through transaction" as Melrose had stated, it had been considering a Dana combination for a "number of years." Most recently, Dana approached GKN about a deal in "late 2017" which was before Melrose made its offer.
GKN also rejected Melrose's statement that the Dana merger would see the sale of its automotive business "prior to any improvement made for the benefit of GKN shareholders". GKN emphasised investors would hold shares in the combined business and benefit through this from the effects of its Project Boost programme as well as the
Melrose's belief that the Dana deal would involve a "lengthy and uncertain completion process" was also opposed by GKN.
"Based on extensive analysis," GKN explained in a statement, "both GKN and Dana are confident that regulatory approvals will be forthcoming and that the transaction will complete by the end of 2018."
GKN added the deal would not need clearance from the US Committee on Foreign Investment in
GKN also rejected Melrose's belief that GKN had "adopted many of the ideas" for its aerospace business proposed by Melrose. GKN argued it had identified opportunities in 2017 and was already "well underway" with "fixing US sites and moving to a Global Operating Model".
In addition, GKN stated Melrose had "so far failed to disclose any plans for GKN's Aerospace business" and so GKN could not understand how they could have "copied anything".
Melrose's belief it was the "best team" for realising potential at GKN was also rejected. GKN stated it felt Melrose was a "novice in automotive", with experience far below that of the management at Dana and the GKN Driveline team.
GKN emphasised Melrose's experience with aerospace was "little better". It claimed Melrose had not been in the aerospace industry since it sold McKechnie Aerospace in 2007 after less than two years of ownership.
GKN pointed to comments from its biggest customer - Airbus SE - last week that it was "practically impossible" to give any new work to GKN under Melrose's ownership when it didn't "know who will be the long-term investor."
GKN also rejected Melrose's claims regarding its pensions. Rather than "substantially" reducing cash contribution to its pension schemes as Melrose suggests, GKN said it raised cash contribution from
Melrose's statement that the Dana deal would see just
Shares in GKN were 0.4% lower at
