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Real-Time news about Gartmore Grp (London Stock Exchange): 0 recent articles
|spob: from the FINANCIAL TIMES
Henderson eyes bid for Gartmore
By Miles Johnson
17 December 2010
Henderson Global Investors has begun negotiations with Gartmore about making a £344m rescue bid for the troubled City fund manager.
It has made a 95p per share conditional offer, a discount to Gartmore's current share price of 104.8p, which would be paid in a mix of cash and Henderson shares, according to people familiar with the talks.
In depth: Hedge funds - Dec-14.SEC fines Gartmore $1.35m for trading breach - Dec-09.Aberdeen rules out buying rival Gartmore - Nov-30.Henderson tests the water for Gartmore rescue - Nov-26.Swan Street builds its interest in Gartmore - Nov-23.
The terms of the deal, which Jeffrey Meyer, Gartmore chief executive, wants to complete by the end of the year, have not been finalised and there is no certainly of its success, these people said.
Henderson's interest in Gartmore, which was first reported by the Financial Times last month, comes after its rival put itself up for sale after the departure of its key fund manager Roger Guy.
Gartmore, which is being advised by Goldman Sachs, received two other indicative offers one from GAM, the Switzerland-based fund manager, and the other from the Japanese financial conglomerate Sumitomo but is now in exclusive talks with Henderson. Gartmore and Henderson both confirmed that they were in discussions.
The move for Gartmore runs counter to Henderson's stated strategy of pursuing acquisitions in the US, but is viewed as an opportunity to add to its retail business and bolster its presence in hedge fund investment products. Last year, Henderson snapped up New Star Asset Management for £115m in a similar rescue takeover.
The likely end of Gartmore's independence comes less than a year after it listed on the London Stock Exchange. Gartmore is still 20 per cent owned by the private equity group Hellman Friedman, which bought it out after it had been passed around owners including Banque Indosuez, NatWest and Nationwide Mutual.
The company, one of the City of London's best-known retail fund managers, has been rocked by a series of high-profile staff departures amid which its shares collapsed by more than 50 per cent from a listing price of 220p. That made it one of the worst-performing stock market listings in Europe since the onset of the financial crisis.
Guillaume Rambourg, who co-managed Gartmore's hedge fund business with Mr Guy, was suspended in March for breaching internal trading rules, later resigning from the company to concentrate on fighting a Financial Services Authority investigation into the incident.
In November, Mr Guy, who managed 16 per cent of Gartmore's £20.9bn of client assets, announced that he would retire on the same day as its chief operating officer Dominic Rossi moved to Fidelity.|
|envirovision: Gartmore, which last month announced it would seek a merger or sale of the company, said the bid talks were on the basis of a proposal priced at "a slight discount" to Gartmore's closing share price of 98.75 pence on December 16.
I DONT FANCY YOUR CHANCES OF GETTING OUT BREAK EVENS, YOU HAVE BEEN MUGGED OVER.|
|minsky: spob - thanks for the update.
But if Henderson's offer is "at a discount to the current share price" why has the share price gone up?|
|spob: Exclusive: Gartmore Races To Agree Henderson Deal Share
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Exclusive: Gartmore Races To Agree Henderson Deal
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December 17, 2010 3:09 PM
Recommend post (0) The board of Gartmore, the struggling fund manager, is racing to agree a takeover by Henderson Group before the end of the year, I have learned.
I am told that Henderson is either in or poised to enter exclusive talks with Gartmore and its adviser, Goldman Sachs. The outline of a deal could be agreed within weeks, according to my sources, although that timetable could prove to be ambitious.
Gartmore is one of the most recognisable names in Britain's vast fund management industry, with £20bn of assets under management. However, it has been struck by a string of mishaps in recent months, including the departure of star fund managers. A controversial incentive deal to retain other executives hasn't helped improve City sentiment toward the company.
Henderson, which is almost three times the size of Gartmore by assets under management, has drafted in Ondra Partners, an advisory firm which helped bring Gartmore to the stock market last year. Ondra is working alongside UBS on assembling a firm bid.
I understand that GAM Holding, the Zurich-listed fund manager, and another firm affiliated to the Japanese group Sumitomo have also held discussions with Gartmore in recent weeks. They remain in the wings if talks with Henderson collapse, and it's also possible that another player such as Jupiter Asset Management could emerge as a bidder.
It's not clear to me how much Henderson will offer to buy Gartmore, although at least part of the offer is likely to be in Henderson shares, and it would probably be at a discount to the current share price. It's possible that it may attempt to structure an offer in a similar way to its rescue bid for New Star last year, when it agreed a price which reduced in proportion with an outflow of funds from the company headed by John Duffield.
I should caution that since no deal has been agreed yet between the boards of Henderson (which trades as Henderson Global Investors) and Gartmore, there is still a real chance of the talks collapsing.
My understanding is that because the board of Gartmore is keen to agree a deal quickly, it may set a formal deadline for firm offers for the business if exclusive talks with Henderson do not yield an agreement within the next few weeks.
"Things are at a very delicate stage," a person involved in the prospective deal told me today.
In one sense, a takeover of Gartmore by Henderson would be odd in that Henderson's stated focus is on growing its business in Asia and the US. Buying Gartmore would do little to aid that but would bulk up Henderson's UK business significantly.
Gartmore has been among the worst-performing stock market listings of the last 12 months (which is not without irony given its status as one of the blue-chip names of the fund management sector). It listed at 220p last December and earlier this afternoon was trading at just over 100p, giving it a market value of just over £350m.
Its miserable experience as a public company has been compounded by the news that Roger Guy, its star fund manager, is quitting.
Gartmore, Henderson and GAM Holding all declined to comment, while Sumitomo could not be reached for comment.|
|andrewbaker: Gartmore have made a mess of things: not a great surprise as given the numbers in the City and financial services who are numerically and intellectually challenged, there is bound to be a company from time to time with enough of them on board to c*ck up what is really a pretty good line to be in (meaning, don't be too far below the average or tracker, and you'll coin in money from the AMC and other not so visible charges).
But ... there is still value there precisely because of the AUM: never mind the quality feel the width. This will attract a bid.
Liontrust has a market value of 3.278% of AUM, whilst Jupiter's is 5.9%. Gartmore's is 1.845%. Say a fair percentage for Gartmore based on AUM is the average of Liontrust and Jupiter, ie 4.589%, and say that the AUM halved from the current £20b. That would give a market value of £458.9m compared to £369.4m currently, which translates to a share price of 124.23p.
And that is assuming 50% of AUM walks out the door.
My 128p guesstimate for a bid is pretty safe: it would be a steal based on current assets managed, and therefore could well be a reasonable amount more.
Of course, the shorters and those with no financial interest either way but just happy to air their complexes anonymously on-line, will not agree: but I'm happy to agree to disagree. It won't affect the outcome one iota anyway.|
|mercury123: Well I was lucky enough to decide to take profits on Friday but at under £1 I think it's time to get back in - the share price is bound to bounce all over the place but it seems to me most of the bad news is now in the price|
|blueflex2: If the info sheet above is true, the share price is undervalued so much.|
|liquidkid: Royal Bank of Canada (RBC) has agreed a deal to acquire BlueBay Asset Management for £963 million.The price represents a premium of 29.1% to the closing price of BlueBay shares of 375.05p on 15 October and a premium of 57.7% on the average three month share price of 307.63p.|
|simon gordon: Numis - 3/9/10:
Possible bid target - we do not see a bid as highly likely, although we believe the prospect of a bid cannot be ignored at the current share price range (we do not see enough natural fit with most of the logical potential bidders, but we estimate worth 140-205p to a serious acquirer).
As we cannot rule out the possibility of a bid, we believe shorting the stock would be a risky strategy at the current price.
Hold - Target = 113p.|
|frizsand: Jupiter orbiting Gartmore is not so crazy after all
19 Jul 2010
Barely a month has gone by since trading began in shares of Jupiter Fund Management. But the asset management industry is already rife with speculation that Jupiter has its eye on one of its quoted rivals specifically, Gartmore.
It's not a crazy idea. Gartmore looks cheap, particularly after its share price fell to 100p last week on news that Guillaume Rambourg, a star trader being investigated by the Financial Services Authority, had resigned...
Gartmore Grp share price data is direct from the London Stock Exchange