‘Right number’ helps GKN blow-out

04 Jul 2012

Acquisition financing returned to ECM centre-stage on Thursday as UK engineering firm GKN raised £140m for a well-received piece of M&A. European companies have now announced equity capital raises of as much as $4.5bn solely for acquisitions in the last week — almost as much as in the rest of the year combined.

GKN said on Thursday morning that it would buy Volvo’s aero-engines unit for £633m and would sell new shares equivalent to around 5% of its capital to support the deal. While a tie-up has long been rumoured and written about by analysts, the price — at around 6.3 ...

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