GKN’s rival suitors offer incentives to win investors

Bloomberg

GKN Plc’s rival suitors offered additional sweeteners to win over the UK aerospace supplier’s shareholders, who are set to decide next week which side to support.
Dana Inc. pledged to trade its stock in London following the US company’s planned takeover of GKN’s automotive unit, it said. Melrose said separately that it would bolster GKN’s pension plan, while easing acceptance terms for its hostile bid to 50 percent plus one share from its original 90 percent target. The measures are aimed at shoring up weaknesses in the dueling proposals that will determine GKN’s future.
Management of the Redditch, England-based company opposes the $11.3 billion offer from investment firm Melrose, arguing that investors have more to gain if they stick with management’s turnaround plan.
As part of its defense, GKN set in motion plans for a breakup, agreeing earlier this month to sell its automotive unit to Dana in a $6.1 billion transaction. GKN advanced 1 percent to 430.60 pence in London, below the stated value of a sweetened 467-pence offer it rejected from Melrose last week. GKN has said its plan would generate more than 500 pence a share for investors. Melrose declined 1.2 percent. Dana, which will rename itself Dana Plc following a combination with the automotive business, said it planned the secondary UK listing following talks with GKN shareholders.