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.

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!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Volatility is back, Europe's future & Ethical's key moment

Volatility is back, Europe's future & Ethical's key moment

This week’s episode of Investment Pulse takes a look at European prospects, FTSE volatility and whether public pressure is about to provide a push for ethical investment

Play Volatility spike: How ETFs can soften the blow

Volatility spike: How ETFs can soften the blow

ETFGI’s Deborah Fuhr discusses the role of ETFs in client portfolios during volatile market conditions

Play Winter market warmers, the post QE world and timing the Fed

Winter market warmers, the post QE world and timing the Fed

This week’s episode of Investment Pulse looks at the winding down of quantitative easing, whether to try and time a US Federal Reserve rate rise and if strong seasonal performers can reverse recent market slumps

Wealth Manager on Twitter