Aerospace trade body ADS has urged the business secretary to block the deal on national security grounds
United Kingdom engineering company GKN, which is battling a hostile £7.8bn bid from turnaround specialist Melrose, sought to persuade shareholders to back an alternative deal with Dana by saying it would receive more cash from the USA company and would return £700m to shareholders as soon as possible.
With the deadline for GKN shareholders to accept or reject Melrose's £8.1bn bid fast approaching on Thursday both sides are bound by strict takeover rules that restrict the type of information that can be put into the public domain. Analysts predict the deal will go down to the wire.
"I welcome Dana's announcement today".
Shareholders would keep 100% of GKN's aerospace business, 47.25% of the enlarged auto parts operation (which would have a United Kingdom listing) and potentially share £2.5bn in cash returns from GKN after any disposals and the Dana deal.
In response, GKN said it would return up to 700 million pounds in cash to shareholders as soon as practicable, as part of an already announced 2.5 billion pound cash return programme from the Dana sale and the planned divestment of its powder metallurgy unit.
Meanwhile Melrose has laid out an offer which will give shareholders £1.4bn of cash, and 60 per cent of the newly combined Melrose business.
A mainstay of Britain's engineering sector, GKN makes parts for the US aviation industry, such as the Boeing 737 jet and Black Hawk helicopter, as well as components for Volkswagen and Ford cars.
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The Guardian further reported that "Messenger for Android" asks for permissions to read all call and SMS logs for a similar goal . But the quiz gathered information on their friends as well, bringing the total number of people affected to about 50 million.
Over 50% of shareholders must vote in favour of the deal for it to gain approval after Melrose lowered the minimum threshold for acceptance of its bid from 90%.
Shareholders are divided. Elliott Advisors and Aviva Investors support the Melrose takeover, while Columbia Threadneedle and Jupiter Asset Management are backing GKN's plan.
GKN has doggedly rejected Melrose's advances, with chief executive Anne Stevens describing Melrose's takeover as "high-risk" and the offer not coming close to reflecting true value.
GKN's clarification came alongside the announcement that United States company Dana will raise its bid for the engineer's automotive division by $140m (£100m), bolstering its defence against Melrose.
American manufacturer Dana has increased its offer to combine with Redditch-based GKN's driveline division by $140m (£100m).
Shares of GKN stock traded down GBX 1 ($0.01) on Wednesday, hitting GBX 429 ($5.93).
In a separate statement, GKN management was forced to retract comments they had made in the Sunday newspapers, saying they thought shareholders would back their plan, after they said they had not been verified.
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