Airbus warns over GKN takeover offer
Reportedly, Airbus has warned that it would be practically impossible to offer a brand new business to one of the biggest engineering giant GKN if it was took over by turnaround specialist Melrose. GKN is responsible for making wing components as well as other major aircrafts for Airbus. It is biggest customer of Airbus.
Airbus's chief operating officer, Tom Williams said that, "The nature of our firm is one that needs a commitment to long-term investment & strategic vision too.” He further told that, “Our Company doesn’t lend itself as a short term financial investment that naturally minimizes R &D budgets as well as limits key innovation.”
“It would be impossible for our industry to provide any new work to GKN under such type of ownership model when we actually don’t know who will likely to be the long-term investor,” he added.
According to the reports, earlier this week, GKN declined what Melrose called as its final bid. Melrose said the offer valued the firm at almost £8.1bn.
Airbus warns over GKN acquisition bid
GKN was founded in the year 1759 as an ironworks in region of South Wales. It is largely known for its involvement in automotive, materials, aerospace and manufacturing engineering. It operates in around 30 countries with having over 59,000 employees.
Mike Turner, the chairman of GKN stated that, “The recent comments from the Airbus that actually create the tensions for long-term investments & strategic vision in our firm that emphasize our belief that Melrose is not a owner of GKN.”
“Melrose’s management lacks the required experience & short term business model is not relevant for the customers and investors of GKN.” He told.
While, the chairman of Melrose Christopher Miller said that, “Our industry invests in its businesses for the long-term.” “Our shareholders and customers will be able to enjoy longer-term process of value creation, investment & business enhancement under our company, which is not seemed to be an appropriate option to continued with GKN ownership.”