Airbus Cautions Against GKN Takeover Bid

Airbus has warned it would be "practically impossible" to give new business to engineering giant GKN if it was bought by turnaround specialist Melrose.

GKN makes wing components and other key aircraft parts for Airbus, which is its biggest customer. However, it is fighting off a hostile bid from Melrose, saying it fundamentally undervalues the firm.

GKN employs more than 59,000 people, with 6,000 in the UK.

Tom Williams, Airbus's chief operating officer at its commercial aircraft division, said: "The nature of our industry is one that requires a commitment to long-term investment and strategic vision.

"The industry does not lend itself to shorter term financial investment which naturally reduces R&D budgets and limits vital innovation.

"It would be practically impossible for us to give any new work to GKN under such ownership model when we don't know who will be the long-term investor."

Earlier this week, GKN rejected what Melrose called its "final" offer. Melrose said the bid valued the company at £8.1bn. (end of excerpt)

Click here for the full story, on the BBC News website.

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