GKN rejects takeover offer from Melrose, to restructure

LONDON, Jan 12 (Reuters) - Troubled British engineer GKN has rejected an unsolicited offer from rival Melrose and set out plans to split its business in half as it recovers from a profit warning.

The offer, valuing the business at 405 pence ($5.48) per share, sent shares in GKN up 20 percent to 398 pence in early Friday trading.

($1 = 0.7385 pounds) (Reporting by Kate Holton; editing by Costas Pitas)