GKN to sell off assets and return £2.5bn to shareholders
Engineering giant GKN says it will sell off parts of its business and return £2.5bn in cash to its shareholders over the next three years.
The plans are part of its defence against a £7.4bn hostile takeover bid from Melrose Industries.
GKN's new strategy and transformation plan includes the sale of various divisions over the next 12-18 months.
Last month GKN rejected the bid from Melrose saying it "fundamentally undervalued" the firm.
GKN chief executive Anne Stevens said: "The new strategy brings clarity, accountability and focus to GKN's world class businesses and will allow the group to attain world class financial performance."
"Too often we pursued growth at the expense of returns, this will no longer be the case. The new strategy brings discipline, both financial and operational."
However Melrose has argued that it could "deliver significantly greater benefits" to GKN's shareholders than the current management team.