Council set to call for block on GKN bid

A motion put forward by council cabinet member Lee Carter at Thursday's full council meeting will ask for the authority's backing in asking the government to block Melrose's £7.4 billion bid to buy GKN.

The company employs more than 400 people at its Hadley base in Telford.

Councillor Carter said the uncertainty over the future of the firm, and quality jobs, was causing concern for workers, their families, and the council.

He said: "Obviously if the takeover happens there is a potential threat to jobs and the plant at Hadley, which has provided a source of employment for many years. My own father has worked there for 42 years, many other councillors have relatives and constituents who have worked there.

"It is significant in terms of the kind of jobs. They are skilled jobs, well paid jobs, a lot of people have served a long time there as well.

"I think the likelihood is if Melrose takes hold of GKN they would probably split the business, which is a big threat to the site in Hadley.

"This is about showing our support for the workers, the union and the whole company of GKN."

Councillor Carter's comments came as Melrose's bid for the firm received a double boost with regulatory backing in the US and Canada.

The motion put forward by Councillor Carter, and seconded by the authority's leader, Councillor Shaun Davies, asks the government to block the bid.

It states: "This council notes with concern the attempted hostile takeover of GKN by Melrose PLC which threatens the jobs of many high skilled manufacturing workers, their pension funds and the supply chain.

"We call upon the secretary of state for business, energy and industrial strategy to use his powers under the Enterprise Act 2002 and intervene in the public interest to block any sale which is against the long term interests of the company and its workforce."

Councillor Carter said that the company has an emotional attachment for many people in the borough.

He said: "I have had members of my family, generations have worked there. If you look across the council chamber councillors from different parties have had apprenticeships, there's a huge history with people across the borough."

Earlier this month the Unite union urged GKN shareholders to reject the hostile overtures from Melrose, warning the company would look to sell off aspects of the firm and in doing so would damage GKN's status as a global leader in manufacturing innovation.