Melrose Industries Plc said it will make a firm 7.4 trillion – policy ($ 10.2 billion) for GKN Plc, seeking to beat the British manufacturer of aerospace and automotive components after it rejected an unsolicited approach.
Holders will receive 1.49 Melrose shares and 81 pence in cash for each share GKN, valuing the target at around 430.1 pence per share, said Melrose, based in Birmingham, England, in a statement Wednesday. The terms are the same as Melrose's initial approach, although the value per share has increased by 405 pence as the bidder's shares have risen.
The proposal comes after Melrose, a UK investment firm specializing in this week with shareholders at GKN, based in Redditch, England, which is a key supplier for Airbus SE and ] Boeing Co. The offer will increase the pressure on the target to get to the negotiating table with Melrose.  GKN made public Melrose's initial focus on January 12, saying it rejected the offer because it underestimates the company and its prospects. Melrose is at a delicate time for GKN, which said in November that it was firing its new chief executive before it started in the middle of a series of write-downs related to a struggling aerospace plant in Alabama. To aggravate the turmoil, the decision of the United Kingdom to leave the European Union has clouded the prospects for auto parts manufacturers in the country due to its dependence on open trade.
GKN said last week it would split into two businesses and appointed interim CEO Anne Stevens for the position on a permanent basis.
GKN rose 0.7 percent to 445.20 pence at 8:15 a.m. M. In London, while Melrose fell 1 percent to 231.90 pence.