Dowlais Takeover Rumours (DWL)

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.

Hi everyone. I am new to this site so apologies to all you more experienced posters/investors, who probably know a lot more than I do. I was wondering why this Dowlais stock has been so lacklustre. I always thought Melrose was a company that turned around the companies they acquired and then made them lean and profitable for further sell on. What I do not understand is why was one of the first things Dowlais did was to take a hit on the Goodwill writedown that equated to approx half of the current market capitalisation of Dowlais. Should the upcoming Goodwill writedown not have been announced at the time of Dowlais demerger from Melrose? For such a global leader that GKN Automotive is, I currently have little confidence in the BOD to get this turned around. Bring back CK Chow, I say with tongue in cheek!! I am now of the view that the only thing that will turn the share around is if there is an aggressive takeover bid. Sorry to moan.