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
Brewin's Gutteridge: the opportunities in UK challenger banks

Brewin's Gutteridge: the opportunities in UK challenger banks

In this week's podcast, Brewin Dolphin's Ben Gutteridge and Guy Foster, discuss opportunities in the global financials sector with Aptus' Johnny De La Hey.

Play Charles Tan on Woodford & hidden trust income gems

Charles Tan on Woodford & hidden trust income gems

Cantor Fitzgerald investment company analyst Charles Tan discusses Woodford Patient Capital and some of the income trusts slipping under the radar.  

Brewin's Foster: the world’s most unconventional monetary policies

Brewin's Foster: the world’s most unconventional monetary policies

In this week's podcast, Guy Foster asks why the world’s biggest economies are pursuing some of the world’s most unconventional monetary policies. 

Your Business: Cover Star Club

Profile: how Close Brothers gave power back to the regions

Profile: how Close Brothers gave power back to the regions

Almost a year into the role, Close Brothers Asset Management head of wealth management Andy Cumming has highlighted three keys areas of focus

Wealth Manager on Twitter