Boss of Portsmouth aerspace firm blasts take-over bid

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BOSSES behind an aerospace firm based in Copnor have rubbished a takeover bid of the company.

GKN has written to shareholders to warn over the ‘entirely opportunistic’ takeover bid by Melrose, saying its inexperienced management team and short-term business model are ‘inappropriate’ for the business.

The engineering giant’s letter detailed shortcomings of Melrose’s £7.4bn offer while highlighting the benefits of its new strategic plan.

‘The Melrose offer is not a good deal – it is low price and high risk,’ the letter, signed by GKN chairman Mike Turner, said.

‘On the basis of its most recent share price, Melrose claims its premium is 22 per cent.

‘By comparison, precedent FTSE 100 takeovers have an average premium of 43 per cent,” he said, adding Melrose has paid ‘materially higher premiums in each of its prior public takeovers’.

He also pointed to Melrose’s ‘weaker’ credit profile lack of experience in the aerospace industry.

GKN has a base in Airport Service Road, Copnor.