FTSE 100 company employs 6,000 staff in the UK
Engineering giant GKN has said today it will separate its aerospace and automotive divisions by the middle of next year, a plan that it hopes will convince its investors to reject the cash and shares approach made by turnaround specialist Melrose.
The FTSE 100 company, which currently employs 6,000 staff in the UK across its aerospace and automotive divisions, is embroiled in a £7.4bn hostile takeover tussle with investment group Melrose Industries.
“What this will show our shareholders is the full value of a sum-of-the-parts, which up until now we believe has been obscured by the conglomerate structure,” said Anne Stevens, GKN’s chief executive.
The two divisions, known as GKN Aerospace and GKN Driveline, will become two separate companies via a demerger, with the aim of creating ‘two strong companies with investment grade balance sheets that can support their share of the group’s pension liabilities.’
Unite, the largest country union, had warned last month that the national security of the US could be jeopardised if the takeover of UK defence contractor GKN by investment company Melrose goes ahead.
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