GKN Takeover

MP pledges to fight for GKN jobs and pensions

"There are those who will say Melrose is a UK company subject to UK law and that in theory the takeover of GKN is just a change of ownership from one group of UK shareholders to another.

"But in reality, what we are seeing is the future of a great British manufacturing company being decided by short term value investors. These investors, or vulture funds, came onto the GKN share register for a matter of weeks, in order to make a quick and significant profit. And it is they who have decided the future of this great British company. There are few who would condone this.

"Capitalism has moved on since the 1980’s. Today we care about those with a long-term interest in our manufacturing sector. Today the interests of employees, pensioners, customers, communities, suppliers and innovators come first and well before the interests of hedge funds making a quick buck. No one disagrees.

"Under the Takeover Code, as it stands, there is little likelihood of intervention from the Secretary of State on the grounds of national interest.

"If good is to come from this, it will be reform of the Takeover Code, preventing new investors from participating in a vote to decide the long-term future of a company such as GKN.

"I will fight to protect local jobs and pensions. GKN has a proud history. I am gutted by this outcome."

Lucy Allan MP, a former Chartered Accountant with Price Waterhouse, specialising in the manufacturing sector; GKN was a former client.