Hints and tips:
...Marks and Spencer, the retailer, Melrose, which owns venerable manufacturer GKN, New York-based Macy’s department store, and European aircraft-maker Airbus have all announced potential cuts in recent weeks...
...The GKN deal was one of London’s most acrimonious takeover battles in a decade....
...GKN shareholders agreed their takeover at the end of March....
...GKN and Dana declined to comment....
...They did, however, step in to demand binding undertakings before clearing the less contentious and less industrially sensitive bid for GKN by the (British) group Melrose Industries last year....
...GKN, the UK aerospace and automotive parts supplier, has also been cited although some doubt it would have the appetite given it is implementing a turnround of its business....
...Potential buyers include Spanish aircraft parts maker Aernnova, and there has also been speculation around interest from aerospace companies GKN in the UK and AeroSystems in the US....
...TATE has done sterling work on rebuilding its balance sheet and cashflow in recent years, reflected in FY20E ND:EBITDA (inc. IFRS 16) of 0.9x & 1.8x FCF dividend cover....
...However, others doubt that it would have the appetite given it is implementing a turnround at GKN. Melrose declined to comment....
...business to Dana Inc., we remain sceptical of the company’s ability to deliver on Project Boost for its aerospace business....
...GKN has once again called on its shareholders to reject the approaches of turnround specialist Melrose and back the British engineering group’s own plans to combine its automotive business with Dana Inc,...
...GKN does have a defence division, but it is relatively low-tech and based largely in the US. Indeed 80 per cent of GKN’s employees are outside Britain, as are most of its institutional shareholders....
...Dana Inc, the US automotive supplier which has inserted itself into the GKN-Melrose takeover battle, said on Monday the automotive market was looking brighter than it had previously thought, prompting it...
...Melrose also used its trading statement to once again underline its enthusiasm for buying GKN: We are working hard on our proposal to merge the business and shareholder interests of GKN with Melrose to...
...Hold: GKN (GKN) GKN has indicated that it would consider splitting the aerospace and automotive businesses in a bid to enhance shareholder value, writes Mark Robinson....
...“We believe the Melrose offer does not reflect the intrinsic value of GKN, and this position is supported by the current market price of GKN,” he said....
...GKN has scrambled to fight back....
...It simply said GKN’s new automotive sales forecasts were “part of the justification of the premium that we are offering to GKN shareholders as we seek to create a £11bn value powerhouse by merging our two...
...enlarged GKN-Melrose, and 57 per cent of all its future payouts....
...Then again, the team led by Gleacher Shacklock and Slaughter and May has good reason to be grateful: the Panel’s code is buying GKN time to find a white knight....
...And, finally, pension deficits are moving up the agenda in Melrose’s £7bn hostile takeover bid for engineer GKN. Or, at least, GKN would like them to....
...warns pension shortfall risks ballooning further (FT) Melrose offers to write £150m cheque to cover GKN’s pension funds (FastFT) Japanese chipmaker Renesas is in talks to acquire Maxim (CNBC) Sberbank...
...The battle over the future of GKN probably reinforces their perceptions. The venerable engineering group may have lost its way in recent years, with profitability trailing peers....
...Lombard Melrose could win more from GKN by winning friends News of Melrose’s £7bn bid — the biggest hostile approach in Britain since Kraft targeted Cadbury eight years ago — has had commentators harking...
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