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Takeover Threatens £700M Pension Deficit: Engineering Giant

Law360, London (January 29, 2018, 6:03 PM GMT) -- GKN PLC became the latest major British company to warn of a threat to its pension scheme on Monday, saying a hostile takeover could widen the plan’s £700 million ($983.9 million) deficit.

The engineering giant, which is fending off a takeover by acquisitions specialist Melrose PLC, said that a merger would leave the resulting company with a “materially higher” level of debt than GKN is suffering at present. 

“This may have implications for the covenant strength of the company, the level of the technical provisions deficit...
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