© Reuters. The fund, Elliott invites you to the capital of GKN
LONDON (Reuters) – The fund american activist Elliott revealed Monday, having taken an interest in GKN (LON:GKN), which he might as well try to make pressure so that it engages in discussions with Melrose, which has launched an unsolicited offer to purchase on the group of british engineering.
The hedge fund, which has the habit to invite in this kind of battle, holds a participation of 1.7% in GKN and sell a position of 0.5% on Melrose, in both cases via derivatives.
GKN has rejected Friday an offer of seven billion pounds (7.9 billion euros), in cash and in shares, of Melrose.
He said they want to rather split into two separate entities.
A source close to the dossier said that Elliott considered the current supply of Melrose too low, but that GKN should discuss with this pretender.
“They should definitely talk to them to find the right price and the right structure,” said this source.
Always according to this source, Elliott has invested in GKN “for a moment” and he thinks that the group is less efficient than its competitors.
The short position on Melrose is intended for Elliott to cover it up, said this source.
(Ben Martin, Véronique Tison and Bertrand Boucey for the French service) OLFRBUS Reuters France Online Report Business News 20180115T203059+0000