Melrose Industries Share Discussion Threads

[meanwhile] 29/1/2018 12:07

New MRO shares will be created and issued to GKN shareholders. 81p Cash will be borrowed and issued to GKN shareholders.

[sogoesit] 29/1/2018 11:44

I was alluding to brexitplus' post 1971.
Have I misunderstood how they will fund the acquisition with "new shares" and it will be all paper?

[meanwhile] 29/1/2018 10:06

Sogoesit,
I know of no rights issue. Have I missed it?

[sogoesit] 29/1/2018 09:59

Meanwhile post 1968: I don't know whether you've been wrong in the past but you seem to me to speak sense.
Once short term risk perception is cleared MRO should deliver probably above and beyond. Trading around noise, and with so many variables in play, must be a voting exercise at best.

As you do say "short term" price may suffer.

On another issue, and given this, I am thinking of accumulating in MRO but will await the rights issue.
In which case what's the opinion on buying into GKN at the current price instead?

[brexitplus] 26/1/2018 17:27

I believe we will be asked to vote on the deal. Cash funding for the 20% is already in place. The 80% will be a share issue but not at the normal discount. Return of profits should be on Nortek but the return will be heavily diluted unless Nortek is sold before GKN is acquired. Not likely.

[dav1dc2] 26/1/2018 16:58

Above "the " equals "there" with apologies !

[dav1dc2] 26/1/2018 16:56

If, if this deal with GKN goes ahead, what will happen to the existing MRO shareholders like me? Will we be asked to vote or pay something or ...what? Any ideas guys.The could not be a cash return could there ? Ideas please?

[meanwhile] 25/1/2018 23:24

Most indications are now for a GKN deal at, or arounmd, the current offer.
So where do the shares go from here?
The MRO final results, usually early March, will be more important than ever, since they will show not only what MRO have done for Nortek, but will indicate what the same treatment can do for GKN.
We must bear in mind, of course, that a substantial improvement at GKN is already in the MRO price (the premium offered to GKN). In addition, disgruntled GKN shareholders may ditch their new MRO shares, to put their money, for sentimental reasons, into some other over-the hill outfit. This could hit the MRO price short-term.

However, I sense that the March results will exceed expectations for Nortek, and thereby boost further the promise for GKN. I see a good rise in prospect.

Of course, I could be completely wrong, but have I been wrong in the past?

[sogoesit] 25/1/2018 17:41

Is Ms Stevens making a crème caramel of this (post 1963) or will she come up with a plan for stripping?

[brexitplus] 24/1/2018 16:12

Yes, gkn will move with the mro share price. Without anyone else, such as Carlyle coming in the market seems to think this Melrose will own gkn. Lots of Melrose punches and short positions being undone.

[meanwhile] 24/1/2018 14:54

Look at the share price graphs for MRO & GKN, just for this week. Compare with the graph for the FTSE100 or FTSE250. Some call these graphs 'charts'.

The market thinks they are now the same investment.

[meanwhile] 24/1/2018 10:55

Market currently believes the deal will proceed now at more or less the offer price - the 2 shares moving together the last few days.
Watch out for any divergence, which could indicate otherwise.

[brexitplus] 23/1/2018 17:12

Anne Stevens 2010 interview in Wall Street Journal

WYOMISSING, Pa.—Nowadays, former chief executive Anne Stevens spends time job hunting and making créme caramel in the kitchen of her 13,400-square-foot home in this Reading, Pa., suburb.

Nine months after leaving the highest job at Carpenter Technology Corp. , she typically devotes at least three hours a day making calls to company executives, recruiters and professional contacts. A board member at Lockheed Martin Corp. and one-time Ford Motor Co. executive, Ms. Stevens faces a job market unusual in the exclusive ranks of top executives—but not unfamiliar to many Americans.

"There just aren't a lot of [CEO] searches out there," she says.

Anne Stevens is among a growing number of job-hunting former CEOs.

Ms. Stevens, now 61, was a first-time CEO when Carpenter, a developer and maker of specialty alloys, hired her in November 2006. The nursing-school dropout had received her engineering degree at age 30. She spent a decade working for Exxon Corp., then joined Ford as a business planner in 1990.

She eventually advanced to chief operating officer for the Americas, overseeing more than $75 billion in annual revenue. That made Ms. Stevens the highest ranked woman in the U.S. automotive industry.

She managed the Detroit auto maker's tricky vehicle recalls and plant shutdowns following the turmoil after September 11, 2001. Bill Ford Jr., Ford's executive chairman and previous CEO, says Ms. Stevens played a key role in crafting a North American turnaround plan.

Ms. Stevens even aspired to run Ford. Once she turned 57, however, "age was running against me," she recalls. "To go for my dream, I had to leave."

So eager was she to be a CEO that she took the first helm offered—at Carpenter. Its headquarters in her hometown of Reading, Pa., made the job even more appealing. As a result, she says, she "didn't probe deep enough" into its boardroom personalities, customers, products and operations.

"I didn't realize how much [Carpenter] lacked structure and systems," Ms. Stevens says. "If I knew then what I know now, I would have never taken the job."

Carpenter achieved record results during her first two years, as Ms. Stevens sold assets, enlarged melting facilities and shook up senior management. But profits and sales slipped in the fiscal year ended June 2009.

Ms. Stevens says she "found it difficult to build a close relationship" with fellow directors. The stressful situation often woke her up at night. Board members opposed her strategy to expand the company during the downturn, she remembers. In summer 2009, the board stripped her of the chairman's title. She soon quit.

Splitting the top roles "was an emerging practice," says Gregory Pratt, an outside director who now is chairman. Board members appreciate "the improvements she made in Carpenter's business" and she "was an excellent CEO," Mr. Pratt adds. He says Ms. Stevens never told him she had significant concerns about board communications.

As she seeks work in the U.S. or abroad, Ms. Stevens is getting assistance from Mr. Aslaksen and his colleagues. Boards needing a new chief often value a battle-tested executive like Ms. Stevens, suggests Mr. Carey, a Korn/Ferry vice chairman.

Ms. Stevens has also approached private-equity firms about leading a small portfolio company.

Despite her search, Ms. Stevens has yet to score any face-to-face interviews. "It is going to be a challenge" for Ms. Stevens to find another CEO post because the huge supply of potential chiefs enables boards to overlook "anyone who has any taint of controversy," says Judith von Seldeneck, head of Diversified Search Odgers Berndtson.

The unemployed chief executive keeps busy serving on the Lockheed Martin board, caring for a sick friend – and knitting afghans.

Yet Ms. Stevens was so sure her next corner office would require relocation that she put her French country-style home up for sale in November."I don't need a house that big," she observes. "I used the house a lot for entertaining while I was CEO."

[brexitplus] 22/1/2018 17:53

Suggested Ergotron in Sunday times.

[dav1dc2] 22/1/2018 17:12

What part of NORTEK is to be sold? I have not seen anything/news about this.

[sogoesit] 22/1/2018 12:09

Yes, market not impressed with GKN news today; Melrose probably winning the argument.

[brexitplus] 22/1/2018 10:24

GKN news release gone down like a lead balloon. Already known info, and as Melrose say is priced in.

Now we have the quiet period. Institutions have made up their minds, GKN looking for the magic bullet.

Relative volumes low so prices drifting down to analysts prices.

Wait and see!

[brexitplus] 21/1/2018 16:45

My wife had a 12 month contract trying to get GPS working together. Money, staff etc supplied foc. Gave up after 5 months. Saw the huge waste of money on IT. Her new organisation only existed because they could get new money. It duplicated another organisation. When funding was late they were told it had to be spent by year end or lost. Told “just spend it!!!” Amazing.

[yertiz] 21/1/2018 16:26

NHS is a complete basket case - over, micro and mis-managed on a grander than grand scale. Having worked with (but not in) the NHS for many years, the problems it faces are in all likelihood insurmountable. Staffing, morale, investment, real-estate are all at an extremely low point, but the managers within have created their own ivory towers. Some of the actions I have seen in the system are verging on corrupt - senior managers retiring, getting their pension, then returning on a consultancy basis on the same pay for half the hours and 1/10th the input. Melrose could make a far better job of it by ridding the system of the old guard completely and running it as a business, not a management cash cow. But that will never happen.....will it?

[brexitplus] 21/1/2018 12:01

Press always need something to talk about. Even if GKN fails Melrose become higher profile as in the USA. Yesterday I looked back at the Melrose annual reports back to 2004 (yes sad but the weather was terrible) and as far as I can see Melrose have only failed with Charter and Novar on deals that were public. Both to stop paying too much. Good discipline.

[bscuit] 21/1/2018 11:22

But the other ST appears to be leaving to the view that GKN may be an acquisition too far and defence concerns down the line to a disposal may combineven to scupper the deal.

IMV a Nortek deal while good for the concept would increase the GKN outcome percentage and that might send the wrong message.

[brexitplus] 21/1/2018 11:15

Great company Melrose. Do you think they could be persuaded to look at the NHS on a consultancy basis?!

[eipgam] 21/1/2018 10:55

MRO front page ST business

Part of the Nortek business to be sold already

[mattboxy] 21/1/2018 09:53

Ok I was just wondering if you'd heard something specific that implied a majority of shareholders were onboard etc. I hope we get this done in a not too drawn out affair!

[topvest] 21/1/2018 08:28

Melrose will do the job and turn GKN around. GKN management have failed. Easy solution.