MPs have criticised Melrose Industries (LON:MRO) over its bid for GKN (LON:GKN) due to a lack of detail regarding jobs and investment, Reuters has reported. The news marks the latest twist in the ongoing takeover saga, after the FTSE 100 group accused its unwanted suitor yesterday of making ‘misleading statements’ in relation to the engineering company’s pension schemes.
GKN’s share price has advanced in London in today’s session, having added 1.84 percent to 437.90p as of 13:33 GMT. The stock is outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.45 percent higher at 7,170.90 points. Melrose’s share price meanwhile is 2.37 percent up at 220.70p.
MPs criticise Melrose
Reuters reported today that Rachel Reeves, who chairs the Business, Energy and Industrial Strategy Committee, had criticised Melrose over a lack of detail regarding jobs and investment in its bid to acquire GKN.
“Melrose have given a sense of the likely direction of their post-offer undertakings but there is a still a lack of detail in their commitments on investment and jobs and these currently fall short of being legally enforceable,” she pointed out, as quoted by the newswire.
Melrose unveiled an improved and final offer for GKN this week, which GKN rejected, arguing that it continued to ‘fundamentally undervalue’ the company.
GKN flags pension concerns
The FTSE 100 group meanwhile said in a statement yesterday that concerns expressed by its pension trustees exposed “the misleading statements made by Melrose in its revised offer announcement”.
“Melrose’s failure to engage effectively with the Trustees on such a crucial topic as the future of the GKN pension schemes only confirms our view that Melrose […] is not an appropriate owner of GKN,” the FTSE 100 group’s chief executive Anne Stevens commented in the statement.
Melrose in turn responded to GKN’s comments in a statement, with the turnaround specialist’s executive chairman Christopher Miller noting that the company was “working towards an agreement on the GKN pension schemes,” and that it was “an exemplary custodian of pension schemes”.