Melrose Industries Share Discussion Threads

[meanwhile] 02/2/2018 17:31

Yes, Brexitplus, I've got shares mainly & little cash. I need to sell some shortly to buy my son a shop.

On the other matter, more air-time needs to be given to positive 'entities', like Jake Rees-Mogg, Donald Trump, Nigel Farage, James Dyson and, my personal favourite, Ron Burgundy.

[brexitplus] 02/2/2018 17:03

Totally agree. Still I’ve got cash to take advantage hopefully.

[meanwhile] 02/2/2018 16:56

Considerable falls this week for both MRO & GKN, and the market overall.
I blame the collection of misery spreading organisations & individuals which the media give primetime to these days.

For those of you wishing to avoid these 'entities', here is my list.
Most notable organisations are the British Brainwashing Corporation (some will know as the BBC),the CBI, the NHS and the House of Lords.
Notable individuals are Vince Cable, Tony Blair, the Archbishop of Canterbury and Justin Webb.

[brexitplus] 01/2/2018 17:21

Bigalan

Last day is 29th March. It’s all on the Melrose website

[eipgam] 01/2/2018 16:54

and from the local paper

[eipgam] 01/2/2018 16:49

14:54
Union 'fighting to save jobs'

Commenting on the 270 jobs being cut at investment giant Melrose, Unite national officer Linda McCulloch said: "Unite will be fighting to save jobs and protect our members' interests. "This is a highly skilled workforce who contribute massively to the local economy and wider UK engineering and manufacturing sector.

"Offshoring their jobs will deny the local community of decent, well-paid work and further hollow out the region's engineering skill base.

"Unite is far from convinced of the case behind this move and will be challenging the rationale during the consultation."


Posted at 14:51
270 jobs to go at Melrose
GKN

Investment giant Melrose is planning to cut 270 jobs as it continues its bid to buy engineering firm GKN.

Union officials said workers at the Brush turbogenerator business in Loughborough which Melrose bought in 2008 faced losing their jobs.

The firm blamed lower global demand for turbogenerators, which provide electricity for the oil and gas industry.

[bigalan3] 01/2/2018 16:24

When does Melrose's offer finish?
Thank you in advance.

[dozey3] 01/2/2018 13:21

Exceedingly powerful. If I were a GKN holder I would bite their hands off to transfer to MRO, let’s hope lots of GKN pensioners are. The case histories described in detail in the offer doc are most impressive. Do not think the offer will be increased, nor should it imo.

[brexitplus] 01/2/2018 09:23

Here we go. Melrose just maintaining its offer. A pretty powerful prospectus today. GKN response weak.

[mayers] 31/1/2018 21:25

Thanks MEANWHILE, talk of a Rights Issue to some extent allays my apprehensions here. How else can this smaller outfit swallow GKN with its huge pension deficit? Is there something else we do not know? Although the relative size of the companies is not the same I am nevertheless reminded of RBS/ABNAmro and doubtless many are scarred by that, particularly if concerns were not acted on!

[brexitplus] 31/1/2018 18:41

Meanwhile, I think it is very possible for a fundraising.

[bscuit] 31/1/2018 18:27

Yes, following CLLN the Pension trustees abetted by the PPF could flex muscles demanding large top-up?

[meanwhile] 31/1/2018 17:51

Pension deficit at GKN is weighing heavily.
Along with other debt, could we yet see a rights issue from MRO as part of the cash raising and a new offer?

[brexitplus] 31/1/2018 09:54

From the Telegraph

Melrose has the financial firepower to sweeten its £7.4bn offer for GKN by almost £1bn in cash, according to a new analysis of the hostile bid.

Analysts at Square Global Markets have calculated the buyout group could increase the cash element of its current offer by between 20p and 50p per share from the original 81p, while still hitting its internal benchmarks.

A fortnight ago Melrose launched a hostile 430.1p a share bid for FTSE 100-listed aerospace and car parts maker GKN. The 20pc cash and 80pc paper bid would give GKN investors a payout and leave them with 57pc of the combined business if they back the approach.

According to Square Global, Melrose could raise the cash part of the bid and still hit its internal rate of return benchmark of 30pc if it delivers the performance improvements it has in previous takeovers.

Bruno Burki, head of research at the boutique advisory firm, said: “With a trade buyer there’s often hubris that leads them to overpay but Melrose are a financial player and won’t do that.”

He added: “Melrose is looking to raise £4.5bn to finance this and that’s a lot more than they need – there’s a £1.4bn cushion on the balance sheet which they could use to raise the cash payment.”

[brexitplus] 31/1/2018 09:49

Hopefully the full takeover document tomorrow. One article suggests Melrose can afford to increase the price by £1 billion.

[brexitplus] 30/1/2018 13:04

Hi meanwhile. Me too but with old small companies where people were scared of the M.D. so nothing was modernised or improved. Frightening really.

[meanwhile] 30/1/2018 13:00

The whole GKN organisation will be degenerate in most or all of its functions; large, old established organisations invariably are. The pension trustees will be only one of the GKN groups who are petrified by the thought of fine scrutiny by Melrose.

I've seen it. I worked for 22 years in an large, old company taken over by a ruthless outfit. I has scarred me for life. I now have an obsession with the making of money, in gross excess.

[brexitplus] 30/1/2018 12:28

I read that the GKN pension trustees are former GKN employees. Hmmm. Independent???

[brexitplus] 30/1/2018 09:15

They seem a bit dodgy at the moment!

[semper vigilans] 30/1/2018 09:13

One may think that the pension fund trustees would be able to protect their behinds better with the status quo.
They won’t want pesky Melrose management looking over their shoulders will they?

[brexitplus] 30/1/2018 09:06

The pension issue seems very messy with different values being quoted. Melrose 150 million not mentioned by GKN. Seems GKN and its “independent” pension trustees working together. Stinks.

[brexitplus] 29/1/2018 17:06

Totally agree meanwhile. Normally GKN share price would stay put and MRO after rising would gradually fall. I’m surprise the MRO share price is so steady. Lots of posturing by GKN. Let’s wait for the full document. I think MRO will push rapidly.

[meanwhile] 29/1/2018 16:48

Sogoesit,

No. Not valid. Just wait and see what the market rates MRO & GKN share prices.
Nothing else matters.

[grahamburn] 29/1/2018 14:36

The GKN announcement today on its pension deficit seems to be an attempt to scupper the Melrose approach with this being the key paragraph:

Melrose has stated that they expect, in the event of their offer completing, the combined group would have net leverage in line with approximately 2.5x EBITDA; a level materially higher than the Company's leverage level of 0.6x3 as at 30 June 2017. This may have implications for the covenant strength of the Company, the level of the technical provisions deficit and therefore the level of immediate and/or long term cash funding requirements.

[sogoesit] 29/1/2018 12:13

Ok, thanks.
I work out the theoretical ex-new issue share price of MRO will then be about 266p based on current GKN share price of 434p and MRO share price of 232p with MRO creating and issuing 2,559million new shares.
Current MRO share price discount is 14.5%.... theoretically.