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GKN Says Continues To Believe Offer Made By Melrose 'derisory'

GKN Plc. (GKN.L) said it continues to believe that the offer made by Melrose Industries PLC is derisory and that GKN has a far better strategy and detailed operating plan, informed by real industry expertise, to deliver shareholder value.

GKN said it believes that the CFIUS process is likely to take substantially longer than the City Code offer timetable, based on specialist US legal advice.

GKN firmly believed that shareholders should be allowed to make a fully informed decision and not be placed in a position where they have to form a final view on the offer while there remains uncertainty about the timetable and the outcome of a matter as material as the CFIUS process

GKN said it is prepared to consider granting an extension to the City Code timetable to enable the CFIUS process to have concluded before shareholders are required to form a final view on the Melrose offer.

The Board of GKN considers Melrose's offer to be entirely opportunistic and that the terms fundamentally undervalue GKN and its prospects. The Board intends to demonstrate over the coming weeks why its vision for the future of GKN, which is informed by real industry expertise, offers greater value and certainty than Melrose's offer. The Board unanimously recommends that GKN shareholders reject Melrose's offer and take no action.

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