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SIF Portfolio: Turnaround plan should boost profits if GKN bid fails

GKN is “an overly complex and under-managed organisation without focus which needs a fundamental change of culture and leadership”. At least that’s the view of turnaround specialist Melrose Industries, which has the troubled FTSE 100 engineering group firmly on its acquisition radar.

In a presentation published on Monday targeting GKN shareholders, Melrose claimed that GKN has underperformed the FTSE 350 Total Shareholder Return (TSR) index by 26% since 2011. Despite spending £3.2bn on capex and acquisitions, it has “a history of missed margin targets since 2011”.

Melrose believes it can “re-energise…

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