Meyer admits Gartmore vulnerable to takeover

Gartmore chief executive Jeff Meyer (pictured) says his firm is more vulnerable to a takeover after it suffered outflows of £1.65 billion in the first half of the year, adding that Roger Guy remains fully committed to the firm after the controversial resignation of his right hand man Guillaume Rambourg.

Meyer made the comments following loose speculation linking Henderson with a bid last week. However, he believes Gartmore is in a strong enough position to operate successfully as an independent business.  

Meyer said: 'It's fair to say the share price is undervalued which makes us vulnerable to a takeover. The share price remains depressed and it is something we are eager to fix. We remain a strong standalone business with a good strong long-term strategy.'

'Our absolute return range has grown thanks to extreme demand and I don't think we have hit our stride in the UK retail market.'

Meyer also said Roger Guy was dedicated to the firm after the resignation of his co-manager Rambourg last month.

He said: 'Roger has been very busy managing business through the transition and he has spent a lot of time supporting necessary clients. He's happy with the European team around him and the addition of Darrel O'Dea. His line is that he was managing money before Guillaume joined the firm and that he will continue to manage the assets.'

Interim figures from Gartmore showed that assets under management (AUM) fell by 10% in the first six months of the year on the back of the sharp rise in outflows.    

AUM fell to £19.9 billion in the first six months of the year compared with £22.2 billion at the end of December, with inflows swinging from £252 million at the end of December to outflows of £1.65 billion at the end of June.

This trend has continued into July when net outflows reached £238 million. In addition, net outflows from alternative funds were £67 million on 2 August and as of 16 August, notices have been received for redemptions on 1 September of a further £223 million.

The bulk of these outflows were within the firm's European business, which was hit by the resignation of Rambourg. The manager quit Gartmore after the FSA launched a probe into his conduct after the firm suspended him for internal breaches.