FTSE 100 movers: GKN rockets as it rejects Melrose offer; Just Eat gives back gains

London's FTSE 100 was up 0.3% to 7,788.20 in afternoon trade on Friday, having hit a record intraday high of 7,790.96 earlier, led higher by engineer GKN.

Shares in GKN surged after the company said it has rejected a bid proposal from Melrose and appointed Anne Stevens as chief executive, as it announced plans to separate its aerospace and automotive businesses.

GKN confirmed that it received a bid from Melrose on Monday at 405p per share, comprising 80% in new Melrose shares and 20% in cash. Having considered the proposal with its financial advisers, the group has unanimously rejected it, saying it is "entirely opportunistic and that the terms fundamentally undervalue the company and its prospects".

It also announced that it plans to separate its aerospace and automotive businesses following an "intensive analysis of the economic benefits and costs".

Smiths Group was on the front foot as it said the net impact of the new US tax legislation on the group would be “favourable over the medium term”.

Advertising giant WPP was also in the green after it said that Kantar Consulting, which is part of its data investment management division, has bought London-based strategy and growth consultancy Mash for an undisclosed sum.

Bucking the trend, Just Eat retreated, giving back some of the gains it made in the previous session after Barclays upped the stock to 'overweight' from 'equalweight' and lifted the price target to 1,000p from 700p saying it expects strong revenue momentum into FY18.

Risers

GKN (GKN) 417.00p 25.34%
Smiths Group (SMIN) 1,631.50p 4.08%
Marks & Spencer Group (MKS) 310.50p 3.09%
Smurfit Kappa Group (SKG) 2,558.00p 2.48%
WPP (WPP) 1,350.50p 2.00%
BT Group (BT.A) 275.05p 1.55%
Royal Bank of Scotland Group (RBS) 301.30p 1.52%
British Land Company (BLND) 675.74p 1.40%
Ashtead Group (AHT) 2,101.00p 1.35%
Kingfisher (KGF) 346.50p 1.35%

Fallers

British American Tobacco (BATS) 4,974.00p -1.50%
NMC Health (NMC) 3,118.00p -1.45%
Severn Trent (SVT) 2,009.00p -1.33%
Direct Line Insurance Group (DLG) 371.50p -1.28%
Unilever (ULVR) 3,968.00p -1.01%
Just Eat (JE.) 796.20p -0.95%
Shire Plc (SHP) 3,616.50p -0.85%
Croda International (CRDA) 4,399.00p -0.83%
Barclays (BARC) 194.68p -0.72%
Admiral Group (ADM) 1,890.50p -0.68%