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A day after Melrose said that it would inject about £1bn into GKN’s pension scheme, British engineering company GKN slammed Melrose today for making “misleading statements” regarding its pension scheme.
But GKN hit back saying: “These comments are misleading as to the true status of GKN’s pension obligations post the combination of our driveline business with Dana.”
GKN finance director Jos Sclater added: “A month ago, Melrose appeared to suggest that its plan to pay £150m into the pension was sufficient. Now it appears to have unveiled a £1bn plan that would achieve less than GKN’s own agreement with the trustees, at a greater cash cost which would erode shareholder value. I think our shareholders deserve better.”
Melrose had said yesterday that GKN’s planned tie-up of its car part arm with US firm Dana would “orphan” the GKN’s aerospace arm with £3bn of pension liabilities.