Dowlais Takeover Rumours (DWL)

Probably something to do with the TI Fluids takeover. Similar metrics to DWL but approx. half the size in turnover and profit. Taken out for £1B.

In reading the recent FT article about Melrose, it did make reference to the spin-off of Dowlais and that the prospectus indicated the former GKN Automotive business (now Dowlais)contributed 53% of the value to the overall Melrose business. This is one of the reasons why I bought additionally into Dowlais after demerger, but clearly this percentage looks highly suspect. I do look at what I have bought into and think what have i done here? Lets hope for a takeover offer in the £3-4 billion range. I used to work for GKN many years ago and I do remember that the whole group value (including Chep pallets) dropping to approx £0.40 per share (and that included aerospace and Chep!!). Bring back C K Chow.

I don’t think this is down to PR. No one is this bad, surely. More to do with timings and things going on behind the scenes.. setting up potential takeover… talks maybe.