Councillors urge Secretary of State to intervene on hostile GKN takeover bid

The councillors say the future of a Great British company being put at peril all for the apparent benefit of shareholders, hedge funds, banks and bosses.

Telford & Wrekin Labour Councillors Lee Carter and Rob Sloan have placed a motion before the next full meeting of Telford & Wrekin Council urging the Secretary of State for Business, Energy and Industrial Strategy to intervene and stop any hostile takeover of GKN by turnaround firm Melrose Plc.

The bid has roundly been criticised by workers, Trades Unions and many MP's across the Country after concerns were raised about Melrose' plans to leverage debt against the company and their ability to fund a shortfall in the pension fund.

GKN, which has operated from its Hadley Castle site since 1910, would also likely be split as part of the takeover putting at risk over 300 jobs in Telford & Wrekin and up to 6000 jobs nationwide.

Councillor Lee Carter who is also Cabinet Member for Economic Development said: "The potential takeover is of major concern to us given the number of skilled jobs at the site. Once again we see in the future of a Great British company being put at peril all for the apparent benefit of shareholders, hedge funds, banks and bosses but with little or no thought for the livelihoods of workers, the future financial security of their families and the local economies around the factories which the company operate from. We fully support the workers and Unions in their campaign."

Councillor Rob Sloan said: "GKN (Sankeys) has been a major part of our town for over a century and has provided a living to hundreds if not thousands of local families. It's future and that of the 350 men and women employ in Telford and the thousands employed across the Country should not be put under threat by this hostile takeover attempt. The Secretary of State must use the powers he has to stop this takeover."