Hints and tips:
...The European poll echoes findings from a similar survey of leading US executives, said Dana Peterson, chief economist of The Conference Board....
...The visit by Dana’s top team comes as investors consider Melrose’s increased offer....
...GKN and Dana declined to comment....
...GKN is also selling its Driveline business to Dana, the US automotive supplier, in a $6.1bn deal that will give its investors a 47 per cent stake in the world’s biggest maker of vehicle drive systems....
...But Melrose chairman Christopher Miller said the higher offer from Dana would not offset a 7 per cent fall in Dana’s share price since the deal was announced....
...drivetrains,” said James Kamsickas, Dana chief executive....
...Dana is advised by Credit Suisse and Barclays....
...The fact that we will get 100 per cent of that with GKN rather than 60 per cent across both [automotive and aerospace] with Melrose makes us support the Dana/GKN offer,” he said....
...Dana had earlier said it did not comment on speculation....
...In a blow to Melrose, GKN agreed last week to sell its Driveline unit to US group Dana for $6bn cash....
...Under an agreement struck with pension fund trustees as part of the Dana deal, GKN has committed to reduce the gross liabilities from £3bn for the combined group, to £1.99bn for the aerospace business....
...GKN has rejected the cash-and-shares approach from its suitor and instead pledged to sell its automotive business to US group Dana in a $6bn cash-and-shares transaction....
...Mr Miller said: “[It] would leave you with a minority stake in a foreign-listed group run by a Dana management team based in Ohio....
...The deal with Dana last week had been struck at a reasonable price and could have significant upside, the investor said....
...However, the deal on Friday to sell GKN’s Driveline business — which accounts for just over half of sales — to US vehicle drive supplier, Dana, may have changed that view, one investor told the FT....
...GKN investors will have 47 per cent of the Dana/Driveline combination, which will be quoted in the US and UK....
...Meanwhile, GKN’s agreement with Dana and pension fund trustees to transfer liabilities and clear the remaining deficit had left Melrose looking exposed....
...We believe the combination of Driveline with Dana and the plan outlined for the Aerospace business justifies a fair value closer to 600p....
...Under the terms, it is injecting £235m in cash while Dana is putting in £124m. It has also promised a further £390m from the proceeds of planned disposals....
...In a statement early on Thursday in response to Airbus, Melrose accused GKN’s management of a “hasty break-up” with the sale of its Driveline business to Dana of the US and the disposal of its powder metallurgy...
...Ms Stevens also refused to say how long GKN had been in discussions with the US group Dana, which the FT last week revealed was in talks about combining its business with GKN’s Driveline division....
...On Friday GKN said it was in talks with Dana about a “combination” of its automotive business with the US company....
...Pensions black hole A key battleground in the fight over GKN’s future has been pensions, write Michael Pooler and Peggy Hollinger....
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