Britain’s largest union Unite today (Friday 12 January) urged the
UK government to block a takeover bid of the engineering firm GKN
by Melrose and for ministers to toughen up UK takeover rules so
that national and social interests are prime factors in any
decision rather than the depth of a hostile bidder’s pockets.
Branding the unsolicited bid from Melrose as ‘predatory’ and
‘destructive’, Unite urged shareholders to hold firm, warning that
the bid did not have the long...Request free trial
Britain’s largest union Unite today (Friday 12 January) urged the
UK government to block a takeover bid of the engineering firm GKN
by Melrose and for ministers to toughen up UK takeover rules so
that national and social interests are prime factors in any
decision rather than the depth of a hostile bidder’s
pockets.
Branding the unsolicited bid from Melrose as
‘predatory’ and ‘destructive’, Unite urged shareholders to hold
firm, warning that the bid did not have the long term interests of
GKN at heart and could result in the firm being asset stripped if
the bid was successful.
Unite went on to warn government ministers that any
hope of a coherent industrial strategy would lie in tatters if the
Melrose bid was allowed to succeed and would see one of the UK’s
oldest engineering firms fall into the hands of
speculators.
Unite is the main union representing workers across
GKN’s UK automotive, aerospace and research and development
divisions which employ a total of 6,000
workers.
The union is in close dialogue with GKN executives and
Unite shop stewards will be meeting next week with their European
counterparts to agree a coordinated response to stop a
takeover.
Commenting Unite assistant general secretary for
manufacturing Tony Burke said: “The only interests
this predatory takeover bid are in, are those of the speculators
looking to turn a quick buck. Government ministers need to step in
and block this bid and toughen up UK takeover
laws.
“Takeovers need to be decided on more than just
how much money a hostile bidder can throw at shareholders. The
impact on communities and the national interest need to be main
deciding factors in takeover bids as is the case in countries such
as Holland.
“If Melrose’s bid is successful it will blow a
hole in the government’s hope of developing a coherent industrial
strategy and signal that government ministers are happy to see yet
another British company fall prey to vulture
capital.
“If the bid isn’t stopped it could lead to one of
the UK oldest engineering firms being asset stripped, with sites
and divisions across the UK being sold off. Unite will be working
with all interested parties in halting this destructive predatory
bid.
“GKN’s UK workers need to know that the
government is on their side too and backs UK manufacturing by
stopping Melrose’s bid in its tracks.”
