Mubasher: UK-based GKN on Wednesday rejected a GBP 7.4 billion ($10.23 billion) hostile takeover offer from Melrose Industries.

The bid came less than a week after an initial approach of GBP 7 billion from Melrose, but the British engineering giant had dismissed it as well.

The first offer fundamentally undervalued the company, while the latest one was effectively unchanged, GKN said.

Terms of the deal did not change in the new offer but the bid’s value rose to 430.1 pence in cash and shares for GKN, compared with an initial bid of 405 pence per share due to the rise seen in Melrose’s share price during the past few days.

Melrose noted it believed it could "deliver significantly greater benefits" to GKN's shareholders than GKN could on its own.