Welcome to our new website! Let us know what you think..

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

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.

Leave a comment

Related Fund Managers

Christopher Murphy
Christopher Murphy
89/155 in Equity - UK (All Companies) (Performance over 3 years) Average Total Return: 35.04%
Citywire TV
Play Gervais Williams: the real reason to worry about Quindell

Gervais Williams: the real reason to worry about Quindell

Citywire AA-rated manager Gervais Williams has argued that sentiment is the true danger to Quindell.

Play AA-rated Lofthouse: 'maverick' tobacco settlements won't stop M&A

AA-rated Lofthouse: 'maverick' tobacco settlements won't stop M&A

Henderson International Income trust manager Ben Lofthouse shares his thoughts on recent developments in the tobacco sector in this video.

1 Play Renewable energy: what I found on my solar farm trip

Renewable energy: what I found on my solar farm trip

Renewable energy is attracting a lot of investor interest, so I headed to the UK's largest solar farm to find out more.

Your Business: Cover Star Club

Profile: Quilter Cheviot boss Baines sees more consolidation ahead

Profile: Quilter Cheviot boss Baines sees more consolidation ahead

Nineteen months on from the merger of Quilter Cheviot chief executive Martin Baines says the deal is now paying dividends.

Wealth Manager on Twitter