GKN PLC Share News (GKN)

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 GKN's Driveline business by USD140.0 million.

Turnaround specialist Melrose said the tweak of the terms of GKN's sale of Driveline to Dana does not offset the 7% reduction in equity value since it was announced, and is "a small recompense" for what would be lost potential for GKN shareholders.

The last-minute attempt to get shareholder support was a "sign of desperation", Melrose said, describing GKN's plans as a "reckless dismemberment" of the business.

Chairman Christopher Miller commented: "We urge shareholders to cast their votes for a proven Melrose team with an outstanding track record and a plan to revitalise GKN, creating tremendous value and outcome for all stakeholders.

"The alternative is the reckless dismemberment of a business and needless value destruction for all stakeholders. We urge GKN shareholders to accept our offer."

GKN said earlier on Monday that Dana 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 - to be listed in New York and London - after completion, which is unchanged, as are all other terms of the transaction.

GKN shareholders have until 1300 BST on Thursday to approve the GBP8.4 billion Melrose offer, which was upped earlier in March from January's initial GBP7.1 billion offer.