Melrose Industries Share Discussion Threads

[semper vigilans] 14/2/2018 08:17

Following GKN’s idea to hand back cash to shareholders today if they carry on as they are, I don’t seem to see anything on sorting their pension fund.
Doesn’t seem that astute bearing in mind the furore over pensions at the moment?

[brexitplus] 13/2/2018 22:59

Thanks meanwhile.

[meanwhile] 13/2/2018 22:48

Brexitplus,Minerva is indeed an old fool and a nasty example. He claims to have filtered me on GKN, but I felt no pain from it. He's just a bitter old engineer; I've met many in the chemical industry I'm familiar with.They all become embittered by their pie in the sky designs being constantly brought down to reality by the finance people. This is the source of his loathing of MRO.

[meanwhile] 13/2/2018 22:38

Bukko,Brexitplus is correct, the charts don't show the true increases, capital returns etc. My investment in MRO was made in 2006. I've re-invested capital returns, sold off a few shares at rights issues to reinvest in new shares, the usual stuff. My invesment is worth over 12X now.That's a true reflection of how successful they've been.

[brexitplus] 13/2/2018 10:27

MELROSE PERFECT TIMING

Melrose have timed everything to perfection.

GKN announce their results on 27th Feb which will give investors plenty of time to digest the figures, particularly the big hit in the US. Melrose are due to announce their results afterwards in March which gives them an advantage with Nortek.

GKN must disclose their defence by Thursday so Melrose will have two sets of documents to work with.

The Melrose team really are very good.

[brexitplus] 12/2/2018 15:49

bukko, try comparing it to the GKN chart for the same period. Of course the charts do not include dividends or return of capital, which is one of Melrose’s main arguments. Institutions understand this. £4+ billion returned to shareholders.

Credentials have already been proved.

[brexitplus] 12/2/2018 11:44

Hi Meanwhile. I’m surprised you haven’t been blocked by Minerva like me. Seems like a nasty creature.

[solarno lopez] 12/2/2018 08:05

This is gonna cost Melrose an arm and a leg in professional costs win or lose lets hope they win !

[brexitplus] 12/2/2018 07:56

Meanwhile. I saw you most recent post on minerve’s gkn blog. I tend to agree with you. Changing the culture at GKN is very difficult. Too set in their ways. Best Melrose can do is split the company into three manageable parts, improve each as far as possible, sell metallurgy and refloat the two remaining parts as individual companies. Not sure this would generate the gains we want as investors. Better to look to a better company that wants to be acquired.

[brexitplus] 07/2/2018 17:47

From proactive investor

Melrose-GKN takeover would create further value for shareholders, says Barclays

Barclays remains bullish on Melrose, repeating an ‘overweight217; rating and target price of 240p

Business cycles in GKN's aerospace and automotive divisions are a key concern
Melrose Industries PLC’s (LON:MRO) should generate further value for shareholders if it is successful in its takeover bid for GKN PLC (LON:GKN), according to Barclays Capital.

GKN last month advised shareholders to vote against a £7.4bn offer from Melrose, saying it "fundamentally undervalued" the firm.

The turnaround specialist has taken its bid hostile and hopes to win over GKN shareholders.

Barclays remains bullish on Melrose, repeating an ‘overweight217; rating and target price of 240p.

“We have been waiting for Melrose to find its next acquisition and we believe the potential to improve GKN is high; even if the proposed bid for GKN does not go ahead, it illustrates the scale of management’s ambitions, and we expect Melrose to find a suitable alternative in time,” Barclays said.

However, key concerns about the deal include GKN’s pension scheme and business cycles in aerospace and automotive.

GKN has said the proposed takeover would weaken its pension scheme but Melrose has said it has a track record of safeguarding and improving pensioners’ rights in every acquisition it has made.

“We update our analysis of the GKN’s pension scheme and believe that situation looks quite manageable and Melrose’s assumptions appear conservative,” said Barclays.

“Given Melrose’s potential period of ownership, we believe it is difficult to second guess the possible impact of business cycles on its ownership of assets.”

Barclays said absent of some potential near-term risks, it continues to see long-term value in Melrose’s shares regardless of its bid for GKN.

The bank believes Melrose can achieve a 2.0x equity return and 340p share price based on the current formal offer terms if it delivers a 360 basis points operating margin improvement to 11.3%.

[losos] 06/2/2018 11:42

brexitplus - "Melrose holding up very well today"

Yes agree, and I get the feeling this is not like 2008, nevertheless we will see some fall back in equities, have held MRO for a while and will continue to do so.

[brexitplus] 06/2/2018 11:25

Sogoesit

Water off a duck’s back. I like an argument.

Melrose holding up very well today.

[brexitplus] 05/2/2018 13:51

Losos, totally agree. Just thought I’d rather funny.

[steeplejack] 05/2/2018 12:44

These weak equity markets can only help Melrose.

[bscuit] 05/2/2018 11:23

Imread there werew security concerns about the risk the aerospace division passing out of UK hands in a MRO disposal, so how would Canada make sense?

[brexitplus] 05/2/2018 10:34

Apparently according to the Times GKN is talking to Canadian private equity company Onex about selling the aerospace division. Not British, private equity, smells of desperation!!

[brexitplus] 05/2/2018 10:27

Apparently according to the Times GKN is talking to Canadian private equity company Onex about selling the aerospace division. Not British, private equity, smells of desperation!!

[brexitplus] 02/2/2018 18:05

Totally agree.