- Melrose Industries said it had commenced meetings with GKN shareholders to discuss its £7bn bid for the engineering group.

In an accompanying investor presentation, Melrose claimed that GKN's was "an overly complex and under-managed organisation without focus" that needed a change of culture and leadership.

"We are aiming to put into sharp focus the options for GKN shareholders," Melrose chief executive Simon Peckham said.

"They can elect to sell in the market right now for a substantial premium to Friday's opening price - which itself has increased following a rise in the price of Melrose's shares."

"Or they can choose to combine their business with ours and have the majority share in what we are confident will be a business capable of significant value enhancement."

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