LONDON (Reuters) - Columbia Threadneedle, a top 10 shareholder in GKN GKN.L, plans to reject a takeover offer for the British engineering company from industrial turnaround specialist Melrose (MRON.L).
“After careful consideration, we believe the actions set out by the new team at GKN present the best options for shareholders. Accordingly, we are not accepting the Melrose offer,” Richard Colwell, Head of UK Equities at Columbia Threadneedle, said in a statement emailed on Monday.
GKN’s management team has presented an alternative plan to Melrose’s hostile takeover offer, which would involve it merging its auto arm with U.S. firm Dana Incorporated (DAN.N), leaving GKN an aerospace-focused business.
Reporting by Sarah Young and Ben Martin; editing by Kate Holton