February 9, 2018 / 12:48 PM / 3 months ago

GKN mulls extension to Melrose hostile bid timetable

Feb 9 (Reuters) - Engineering group GKN is looking into giving its investors more time to decide on a hostile takeover offer made by Melrose, saying there are a number of uncertainties complicating any decision.

Melrose’s cash-and-shares offer values GKN at about 7 billion pounds but has been rejected as “derisory” by Anne Stevens, chief executive of the aerospace and automotive parts business.

The offer would require acceptance from the U.S. Committee on Foreign Investment (CFIUS) and GKN said on Friday that legal advice had led it to believe that the CFIUS process is likely to take “substantially longer” than current bid deadline.

“(GKN) believes that shareholders should... not be placed in a position where they have to form a final view on the offer while there remains uncertainty about the timetable and the outcome of a matter as material as the CFIUS process,” GKN said in a statement.

“In order to avoid this possibility, the Board of GKN is prepared to consider granting an extension to the City Code timetable,” it added. (Reporting by Esha Vaish in Bengaluru; editing by Mark Heinrich)

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