Report: GKN Near Deal to Sell Driveline Unit to Dana

British engineering company GKN plc is likely to sign a deal in two weeks to sell its driveline business to Ohio-based Dana Inc., multiple sources tell Reuters.

Dana confirmed on Friday that discussions are underway. A successful sale could end a £7 billion ($9.7 billion) hostile takeover bid for GKN by U.K.-based Melrose Industries plc that began in January.

GKN says it had planned before the Melrose bid to separate its automotive and aerospace units. The company’s management considers Melrose’s bid too low. The company also believes a sale of the driveline unit would deliver more value to shareholders than would splitting up the company.

But Reuters says the British government could object to the sale to a foreign company because of GKN’s defense work. Melrose shareholders are scheduled to vote on March 8 whether to proceed with the takeover bid.