Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Aviva’s Murphy says F&C offer is low and tips rival bids

Aviva’s Murphy says F&C offer is low and tips rival bids

One of the largest holders of F&C Asset Management has said its takeover offer from Bank of Montreal (BMO) is ‘at the bottom end’ of his expectations, and that rival groups may take the opportunity to size up the business.

Chris Murphy’s (pictured) £948 million Aviva UK Equity Income fund has around a 1.6% holding in F&C, the fourth largest holding in a retail fund.

Aviva Investors is the largest shareholder in F&C with a 12.11% stake.

‘Our view is we are supportive of the deal at the moment but it’s at the bottom end of the range of our expectations,’ Murphy said.

‘It’s a good quality asset. The price could go up and someone else could look at the business.’

BMO is looking to acquire F&C Asset Management in a £708 million deal, offering shareholders 120p per share alongside a 2p dividend.

The manager’s comments add to a chorus of people questioning whether BMO will face a bidding war for the fund group.

Standard Life Investments, which has a 10.3% stake in F&C, said it is keeping its options open ‘should another suitor for F&C emerge’, branding BMO’s offer on the low side.

Murphy added: ‘We are long-term owners and if it takes a long time so be it, but clearly other people are saying as well they would like to see a larger price.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play JPM’s Negyal: Back divis to temper EM volatility

JPM’s Negyal: Back divis to temper EM volatility

Omar Negyal, co-manager of the JPMorgan Global Emerging Markets Income trust, says a dividend approach to emerging markets reduces the volatility of investing in the asset class.

Play WMR: Why Russia will lose this war

WMR: Why Russia will lose this war

Author and journalist Adam Lebor believes a perfect storm is brewing when it comes to the Russian economy. .

Play WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

Chief economic adviser to London mayor Boris Johnson outlines the geo-political risks in Asia and explains why the risk of another eurozone crisis must not be underestimated.

Your Business: Cover Star Club

Profile: 'new normal' now is as dangerous as when it was applied to tech

Profile: 'new normal' now is as dangerous as when it was applied to tech

7IM's CIO Chris Darbyshire says he has been re-energised by his new role, but has little time for 'new normal' doom-mongers

Wealth Manager on Twitter