Hedge Fund Arbs Place Their Vote In $9 Billion Nail-Biter

(Bloomberg) GKN Plc’s shareholders owe Melrose Industries Plc a debt of gratitude for its hostile bid. But that doesn’t oblige them to accept a takeover offer from the industrial turnaround specialist that still looks too low compared to what the British engineer can achieve on its own.

Melrose’s bid expires in a week. It comprises cash and shares worth 7.9 billion pounds ($9 billion), or 458 pence a share, based on its share price on Thursday. GKN is trading at 429 pence. The large spread suggests the market is divided over whether the assault will succeed.

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