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F&C/BMO deal threat as activist triples exposure to 11%

F&C/BMO deal threat as activist triples exposure to 11%

Activist hedge fund firm Elliott Capital Advisors has more than tripled its exposure in F&C Asset Management.

Elliott, which is well known for forcing through corporate change, has built lifted its holding in the firm to 11% through contracts for difference. The hedge fund firm initially bought a 3.2% interest on 29 January.

The news comes after the F&C board recommended an offer from Bank of Montreal of 120p per share, valuing the firm at £708 million.

Two of F&C's biggest shareholders had mixed reactions to the offer.

Standard Life Investments, which owns a 10.2% stake, said the asset manager could be sold for a higher price, while Aviva Investors, which owns 12.1%, said it would vote in favour of the deal although it also admitted the price was a little low.

In a subsequent interview with Wealth Manager Aviva UK Equity Income fund manager Chris Murphy (pictured) said there was an opportunity for a rival firm to mount a bid.

Shareholders are scheduled to vote on the BMO deal at the end of March.

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Christopher Murphy
Christopher Murphy
108/155 in Equity - UK (All Companies) (Performance over 3 years) Average Total Return: 48.76%
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