Melrose has said that when it has 75% agreement then it will delist GKN which make the shares difficult to trade. I believe it has until 19th April to do this and GKN has recommended this course of action.
When Melrose has 90% it can compulsolary purchase the remaining 10%.
What exactly is the base offer at the moment? Is it the revised offer on the 12th march 2018. ie 1.69 Mro shares for each gkn and 81p? When the offer become unconditional does that mean all existing gkn shareholder would automatically deemed to have accepted the revised offer?
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Their SPs have been tracking each other for some time for obvious reasons.
MRO being shorted again.
Maybe "no news to suggest anything else", but I stick with my reckoning from earlier today. Without wishing to be seen as winding-up anyone, my prediction is that this hostile bid will see the destruction of GKN, and the consequent self-destruction of MRO. Only time will tell.
LONDON (Alliance News) - Moody's Investors Service on Wednesday put the Baa3 senior unsecured debt and programme ratings for GKN PLC under review for a potential downgrade.
Shares in the FTSE 100-listed engineering firm were down 2.8% at 433.70 pence on Wednesday.
The ratings agency's review for downgrade stems from the accepted takeover bid for GKN by FTSE 250-listed turnaround specialist Melrose Industries PLC, which though still subject to certain regulatory and antitrust approvals is expected to become unconditional by April 19.
The review will focus on the impact of Melrose as GKN's future shareholder, which will be dependent on the final acceptance level of the bid, the proposed refinancing of GKN's debt by Melrose, as well as the the FTSE 100-listed firm's future business profile.
In particular, the review will look at the percentage of shareholding that Melrose will hold in GKN, and the execution of the refinancing of financial debt.
Moody's did note that due to the weak positioning of the rating, an upgrade of GKN is unlikely, however it would consider an upgrade to Baa2 if there is clear visibility that GKN could improve its credit strength.
"Our review for downgrade stems from the takeover bid of Melrose, which has now been accepted by the majority of GKN's shareholders, and the related uncertainties about GKN's future shareholding structure, capital structure and business profile. GKN's rating is already weakly positioned on a standalone basis. Our review will focus on the impact of Melrose as GKN's future main shareholder, which will depend on the final acceptance level of the bid, the proposed refinancing measures of GKN's debt by Melrose, and GKN's future business profile," said Senior Credit Officer Matthias Heck.
Quite a lot of selling today as institutional investors unwind their positions together with a fall in the market due to US/China trade war escalating. I think there will be a bit of an overhang but encouraging to see Goldman upping their stake.
Lupo is a bit like a cracked record. All doom and gloom.
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