Melrose Hikes Bid for GKN to $11.3 Billion

Melrose Industries Ltd. has increased its hostile bid for British engineering company GKN plc to £8.1 billion ($11.3 billion).

Melrose, which describes its new bid as final, aims to prevail over a deal struck by GKN on Friday to sell its automotive driveline business to Ohio-based Dana Inc. for $6.1 billion. The U.K. turnaround specialist argues that its plan would avoid regulatory issues and create a British “manufacturing powerhouse.”

Melrose’s latest offer would pay GKN shareholders $1.12 in cash per GKN share and give them 1.69 shares in Melrose for every GKN share they hold, Reuters reports. The company is giving shareholders until March 29 to accept the offer.

GKN’s board has backed the Dana merger. The sale would give GKN stakeholders 133 million shares in newly created Dana plc, valued at $3.5 billion. Current GKN shareholders would own 47.25% of the new company.​​​​​​