Statement re Proposed Liquidation

    RNS Number : 4883F
  F&C Event Driven Limited
  09 October 2008
   



    F&C EVENT DRIVEN LIMITED ("the Company")
    PROPOSED LIQUIDATION


    The Company announced on 5th August that it was unable to comply with the shares in public hands requirement as set out in the Listing
Rules and was conducting a strategic review of the Company and its operations.  This review is now complete.

    Based on the results of the strategic review and following discussions with the largest shareholders in the Company, the Board has
determined the following:
    *     A number of investors have expressed a wish to exit the event driven investment theme and would like the Company to provide them
with an orderly exit route.  
    *     The Board has investigated the possibility of widening the shareholder register but current market conditions are unfavourable for
the Company's investment strategy and the diminished appetite of investors mitigates against this providing a solution.
    *     The Board has decided, therefore, to return cash to shareholders as soon as is reasonably practical.
    *     The Board expects to hold an Extraordinary General Meeting ("EGM") of the Company by the end of December 2008 to propose that the
Company is put into voluntary liquidation.
    *     The Manager had already given redemption instructions for a number of holdings in the Company's portfolio as part of its risk
management process.
    *     The Board would therefore expect the liquidators to be able to distribute approximately 45 per cent of the Company's assets to
shareholders as cash immediately following the EGM with the remainder of the proceeds distributed by the liquidator as soon as is practical
thereafter. 
    *     While the portfolio consists largely of investments in reasonably liquid hedge funds (with the majority having quarterly liquidity
or better), current market conditions have been such that a number of hedge funds have been forced to raise gates, impose side pockets or
other similar constraints on liquidity.  The ability of the Company to liquidate its portfolio in a timely manner and at redemption values
equating to publicised net asset values will largely be dictated by the liquidity schedules of these underlying hedge funds, for which there
is considerable uncertainty at this time.  
    *     The Manager will continue to assist the liquidator in realising investments which have not been realised by December 2008. 
    *     It is expected that dealing in the Company's shares will continue until the voluntary liquidation is approved by shareholders,
until which time the Company is able to buy back its shares.
    *     The Company will provide regular updates on its realisation programme, level of cash holdings and the estimated value of its
unrealised assets.

    Shareholders representing 89 per cent of the Company's issued share capital have indicated their intention to vote in favour of the
voluntary liquidation at the EGM.

    The Board believes that, in proposing that the Company be put into voluntary liquidation, all shareholders will be able to realise cash
for their entire investment. The Board believes that this is a more appropriate proposal for the Company than conducting a 25% tender offer,
as provided for in the Company's prospectus.


    Expected timetable

 Circular to shareholders to approve voluntary  during November 2008
 liquidation 
 EGM to approve liquidation and appoint         by end December 2008
 liquidators
 First distribution to shareholders             As soon as possible thereafter



    Enquiries:

    Anthony Culligan F&C Partners         020 7011 5245

    Jane Lewis Winterflood Investment Trusts    020 3100 0295




This information is provided by RNS
The company news service from the London Stock Exchange
 
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