March 19, 2018 / 7:30 AM / 2 years ago

Dana to seek secondary London listing to help win GKN auto deal

FILE PHOTO: The London Stock Exchange Group offices are seen in the City of London, Britain, December 29, 2017. REUTERS/Toby Melville/File Photo

LONDON (Reuters) - Dana Incorporated (DAN.N), the U.S. company seeking to merge with the auto unit of British engineering company GKN GKN.L, said it would seek a secondary listing in London, a move which would allow more British shareholders to back the deal.

GKN is the subject of a hostile takeover bid from Melrose (MRON.L) which it is trying to fight off an alternative plan to merge its auto unit with Dana, leaving it focused on its aerospace business.

Dana said in a statement on Monday that some GKN shareholders had said they wanted to hold stock in the new enlarged company and it would list in London in order to enable them to do so, getting around rules that prevent some UK funds holding U.S. stock.

Reporting by Sarah Young; editing by Kate Holton

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