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Dana would consider secondary listing in London to win support of GKN shareholders for Driveline merger

Dana's finance director Jonathan Collins said a secondary listing was "absolutely an option" if GKN's investors required it to support the US$6bn deal, the Financial Times reported
GKN Driveline
Under the deal terms, announced last Friday, Dana shareholders will own 52.75% of the merged company after the closing of the Driveline takeover

Dana Inc. (NYSE:DAN) would consider a secondary listing in London to win the support of GKN PLC (LON:GKN) shareholders for plans for the US automotive supplier to merge with the UK firm’s Driveline business, according to media reports.

Dana's finance director Jonathan Collins said a secondary listing was "absolutely an option" if GKN's investors required it to support the US$6bn deal, the Financial Times reported, which was revealed last week as the UK firm fights against a hostile takeover bid from turnaround specialist Melrose Industries PLC (LON:MRO).

READ: GKN and Dana confirm US$6.1bn deal to merge automotive businesses

The FT said Collins was speaking on the first day of a two-day tour of GKN's UK shareholders, together with Dana’s chief executive, Jim Kamsickas.

Under the deal terms, announced last Friday, Dana shareholders will own 52.75% of the merged company after the closing of the Driveline takeover, expected in the second half of 2018, with the firm to be based in the UK but the stock continuing to trade on the NYSE.

On Monday, Melrose responded by raising its offer for GKN to £8.1bn from a previous bid of £7.4bn, while the FTSE 100-listed firm’s management continued to advise shareholders to vote against the offer.

In midday trading in London, GKN shares were 1.8% higher at 437.6p, while Melrose shares were up 2.3% at 220.5p.

In pre-market New York trading, Dana shares were steady at US$26.16

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