GKN shares have jumped 24% this morning after the engineering giant said it had rejected an “unsolicited” offer of 405p a share from turnaround specialist Melrose.
In a statement to the stock exchange, GKN (which makes parts for the car and aerospace industry), explained:
GKN shares are currently trading at 413p and the jump pushed the FTSE 100 to a new intraday high of 7,774 at one point.
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
The FTSE 100 is up in early trading, following a fresh record close on Thursday and another record finish on Wall Street.
It is up 0.05% at 7,766.
The index of the UK’s leading shares is up despite a 0.4% dip in the price of Brent crude oil to $68.94 a barrel.
After a flurry of Christmas trading updates from UK retailers on Thursday, it’s a much quieter day on the corporate front.
An exception is discount retailer B&M, which has reported a sharp increase in sales over Christmas period after opening more than 30 new UK stores over the last nine months.
Also coming up:
1.30pm GMT: US retail sales for December will reveal whether or not consumers in the world’s largest economy had the appetite to spend in the runup to Christmas
1.30pm GMT: US inflation data for December will be viewed in the context of the next move on rates by the Fed