pike fisherman
15 Mar 2018
Dana down again today Dana is down a long way since the bid last Friday, and below it’s price before the bid.Melrose zooming up, GKN dow
pike fisherman
15 Mar 2018
Re: MRO Up, GKN Down Big divergence now, wrong direction for GKN.
RAConnell
15 Mar 2018
Re: Airbus It's GKN who will be scuppered scuppered by Airbus as this "British" company, run by an American geriatric female of indeterminate age, flogs the automotive part to an American company that filed for bankruptcy several years ago. It'll be schadenfreude time when GKN hits the rocks.Melrose are better out of this one.Cheers RAC
pike fisherman
15 Mar 2018
MRO Up, GKN Down 13.18Melrose up to 221.7p, GKN down to 429.7pDeal terms should have GKN 455.6pWhy?
pike fisherman
15 Mar 2018
Sharecast News Analysts at Olivetree Financial calculated on Wednesday that Melrose's ability to attain a 50% acceptance from GKN investors "isn't necessarily the slam-dunk that a decent swathe of the market currently assumes". Analysis of the shareholder register concludes that 49.59% of the GKN register "is currently motivated to tender to Melrose", and 50.41% are unclear. With Dana management in London to sweet-talk investors, "it would appear there is much left to play for here".
Lupo di mare
15 Mar 2018
Re: Airbus GKN says,"GKN notes the recent comments from Tom Williams, Chief Operating Officer of Airbus Commercial Aircraft. These include the following: ?The nature of our industry is one that requires a commitment to long-term investment and strategic vision.? ?The industry does not lend itself to shorter-term financial investment which naturally reduces R&D budgets and limits vital innovation.? ?It would be practically impossible for us to give any new work to GKN under such an ownership model when we don?t know who will be the long-term investor.?Airbus is GKN?s largest customer, representing 20% of the sales of GKN Aerospace in 2017.GKN Chairman, Mike Turner, said:?The comments from Airbus that stress the need for long-term investment and strategic vision in our industry emphasise our firmly held belief that Melrose is not an appropriate owner of GKN.?Its management lacks the relevant experience and its short-term business model is inappropriate for GKN?s customers and investors.?As we have previously stated, and as these comments from Airbus reinforce, winning new business in our markets would be more difficult if customers were uncertain as to the identity of their future long-term partners.?
nick2name
15 Mar 2018
and didn't the guy that you trusted so well, just get fired?the new ceo's a bit of a long term gamble aint she?
nick2name
15 Mar 2018
really? a french assembler of aircraft says to a major supplier 'if you change management and stop doing something for nothing, we would find it difficult to trade'?????????wot happens when import tarriffs are changed?how are you going to substitute our technology?
pike fisherman
15 Mar 2018
Pension Lupo, you forgot to post this from the Times“The proposed new owner of GKN’s automotive business offloaded its UK pension liabilities into the industry lifeboat scheme, it has emerged.”Not much confidence there!!!!
Lupo di mare
15 Mar 2018
Re: Airbus Here's most of the article."LONDON (Alliance News) - Aircraft maker Airbus SE has warned that it would be "practically impossible" to give new work to aerospace and automotive engineering group GKN PLC were Melrose Industries PLC to succeed in its hostile takeover bid, the Financial Times reported on Wednesday.Airbus is GKN's single biggest customer, according to the newspaper.Melrose - a FTSE 250-listed industrial turnaround firm - on Monday raised its offer for GKN to GBP8.4 billion from the initial GBP7.1 billion announced in January. The increased bid followed the announcement last Friday that GKN had reached an agreement to combine its automotive Driveline business with New York-listed engineering firm Dana Inc in a USD6.1 billion cash-and-shares deal.Airbus' Chief Operating Officer for commercial aircraft division Tom Williams told the FT that the possible change in ownership at GKN was troubling because a turnaround specialist would be too focused on the short term."It would be practically impossible for us to give any new work to GKN under such an ownership model when we don't know who will be the long-term investor," Williams told the FT.According to the newspaper, Williams did not name Melrose specifically, but it is the only company bidding for GKN, and one person close to Williams said he had serious questions on Melrose's commitment to long-term research and development.Melrose has rejected allegations that it was a short-term investor. "Melrose manages and invests in its businesses and its customer relationships as if we were to own those businesses for ever," the company told FT."We arranged some time ago to talk to Airbus at a very senior level to make exactly these points and this conversation is scheduled to take place very shortly," Melrose said in a statement, according to the FT.
Lupo di mare
15 Mar 2018
Airbus Talking of the FT, they have a headline today that Airbus have stated that it would be practically impossible for them to work with Melrose, should they win the hostile bid.
Lupo di mare
14 Mar 2018
UK listing for Dana? Their CEO reckons that could be an answer, but the FT says that that "won't solve the problem".But I've found the FT to be disparaging of GKN in comparison to MRO, in the matter of this hostile bid, so, once again, we'll see.
Lupo di mare
14 Mar 2018
Dana CEO meeting shareholders "James Kamsickas, the Dana chief executive, is now in Britain to discuss the merits of the automotive deal with GKN’s major shareholders, two sources familiar with the matter told Reuters.The Dana CEO is expected to spend most of the week in Britain meeting GKN shareholders, one of the sources added. "
PhilipJD
13 Mar 2018
Re: Dana Shares I am with Interactive Investor for my ISA. I asked if I could hold US shares in stocks and shares ISA and the answer was:'Thank you for your secure message. Yes, you will be able to hold US listed stocks within your ISA account.You will need to ensure the W8BEN form is completed as ISA accounts only get tax exemption on UK stocks only.'From experience with other US stocks, W8BEN reduces US IRS withholding from 30% to 15% so there would still be a chunk of money going to US IRS if we end up with US shares trading on a US exchange.
Kingel
13 Mar 2018
The Guardian It is easy to understand why Aviva Investors have sided with Melrose in the great £8bn bid battle for GKN. The fund management house has a 5.4% stake in Melrose and a holding of only 1.2% in GKN. David Cumming, Aviva’s chief investment officer, may genuinely believe that Melrose’s “measured execution of value” is best for shareholders in both companies, but it’s not a high-risk gamble from his point of view. If Melrose were to grab control of GKN on the cheap, that’s great news for his funds.Aviva won’t be alone in having positions in both companies, which makes the outcome of this takeover scrap hard to predict. For some investors, it’s all about which management team, and which break-up plan, to prefer. For those that own only GKN shares, notions like fundamental value also matter.On that old-fashioned yardstick, Melrose’s offer is too low. The bidder, with its shares down 5% on Monday after modestly improving its terms, is offering GKN shareholders only 442p, mostly in the form of its own paper. That may look impressive against a GKN share price that was trading at 326p before the fun started, but January’s price ignores the various fireworks subsequently launched from GKN’s embattled boardroom.The pyrotechnics show hasn’t gone off perfectly, it should be said. GKN’s promise to demerge was the correct defence, but Dana of the US is only a semi-convincing partner for Driveline, the automotive division. GKN shareholders are being asked to take a 47% stake in a US-listed company with a less than illustrious corporate history. Owning US-listed paper will be a problem for some UK funds.Yet even an imperfect $6bn (£4.8bn) automotive deal has underpinned the value in one half of GKN. It also solved GKN’s wider pensions problem, whereas Melrose is still scratching around without agreement with the trustees. The Dana proposal also gives GKN shareholders a clearer picture of what they would own directly and reasonably soon – a pure aerospace company that, despite recent self-inflicted calamities in the US, has high-quality assets and a long order book.It still requires a few generous assumptions to value GKN at 500p, as management does, but some City analysts share the assessment. Either way, one can be confident that shares in an independent GKN would not fall to their pre-bid level. A price around 400p might be nearer the mark. If so, Melrose’s final offer at 442p – giving GKN’s shareholders a 60% share of the pie, versus 57% previously – just looks plain mean. Hostile bids are meant to mean decent takeover premiums. The one on offer here is miserable.GKN should never have found itself in a position of extreme vulnerability, of course. The board, led since 2012 by the chairman, Mike Turner, has not served shareholders well. But, barring an unlikely 11th-hour political intervention, it’s a choice between the GKN’s breakup plan and Melrose’s offer.The latter’s breakup plan would take longer to execute; it probably carries as many executive risks because Melrose’s crew, even if they’re well regarded by investors, haven’t played in this league before; and there would be more debt around.The gamble might be attractive to GKN if the takeover terms were decent. But they’re not. Melrose’s offer may succeed – but it doesn’t deserve to.[link]
