Old Mutual Share Discussion Threads

[broadwood] 07/3/2016 16:56

Old Mutual (OML
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jumped 7.2% to 192.6p on reports the group had received a takeover approach from private equity firms and was planning a split into four businesses.

'Old Mutual shares are sharply higher this morning on weekend speculation that it could be broken up,' said Mike van Dulken, head of research at Accendo Markets. 'While it says that a decision has "yet to be made", investors will be hoping that it's a case of 2+2=5, with the individual assets being worth more on a stand-alone basis that whilst held together.'

Eamonn Flanagan, analyst at Shore Capital, added that a break-up of the business could add £1 billion of value to the business. 'We believe that a disposal or demerger of [wealth management business] Old Mutual Wealth is a distinct possibility,' he said. 'The interaction with the South African life and banking operations is pretty limited and, indeed, probably introduces the conglomerate discount that the stock has traded on for quite a while

[chinese investor] 07/3/2016 08:25

For The Record I Top Sliced !

[broadwood] 07/3/2016 08:09

Phew. That was lucky. Had these down for a probable sale after the results this week as they have languished on the weakness of the rand.

Await developments.

[chinese investor] 07/3/2016 08:07

That's How To Do It Professor Green Speedos !

[broadwood] 07/3/2016 07:47

Old Mutual responded to weekend press speculation with anything but clarity on Monday, releasing a short statement to the market.
The FTSE 100 insurance and finance group was said by Sky News and numerous Sunday newspapers to be planning a £9bn split into numerous standalone companies, which could lead to a takeover battle for some of its biggest operations.

On Monday, the company reiterated that a strategic review was being conducted, as announced when chief executive Bruce Hemphill joined on 1 November last year.

"We can confirm that all options for the strategic review are being considered, but no decision has yet been made," Old Mutual's board said in a statement.

The Anglo-South African firm was due to announce its preliminary results on 11 March, and said it would provide an update on the strategic review at that time.

[broadwood] 07/3/2016 07:29

Nice. Another bid battle.

Either way, its going to be value enhancing. Pleased I didn't sell out.

[chinese investor] 06/3/2016 15:25

The FTSE-100 financial services group Old Mutual is plotting an audacious £9bn break-up which could spark a takeover battle for some of the City's most prominent wealth management operations.


Sky News can reveal that the Anglo-South African giant is working on a plan to split itself into standalone companies comprising its stake in Nedbank, one of South Africa's biggest lenders; its wealth unit, which is focused on the UK; its emerging markets operation based in South Africa; and its institutional asset management business, which includes its remaining stake in the US-listed division.

Two buyout firms - Cinven and Warburg Pincus - are already said to have tabled a multibillion pound joint cash offer for Old Mutual Wealth, which includes names such as Quilter Cheviot and Old Mutual Global Investors, one of the most powerful investors in the UK stock market.

Details of the break-up plan could be outlined to the City as soon as next Friday, when Old Mutual is due to announce its annual results.

Insiders cautioned, however, that the plan has yet to be finalised and is likely to take many months to complete.

If they come to fruition, the proposals would carve up one of the best-known names in London's blue-chip share index and divide the ownership of businesses which manage roughly £320bn of assets.

Old Mutual, which recently agreed a deal to sponsor some of England's rugby union international matches, was established in Cape Town in 1845, but has endured speculation for many years about the logic of its corporate structure.

In 2014, it listed its US-based asset management arm, OM Asset Management, which counts a string of boutique fund managers among its affiliates.

It also came close to selling Nedbank to HSBC in 2010 but the deal was called off at the 11th hour.

Bruce Hemphill, Old Mutual's group chief executive, is understood to have instructed advisers to begin work on the break-up shortly after taking over in November.

Old Mutual has a new management team in the form of Mr Hemphill and Ingrid Johnson, the chief financial officer.


Julian Roberts and Philip Broadley, their respective predecessors, were regarded in the City as having done a valuable job repairing many of its failing businesses after the financial crisis.

However, the company has continued to face the headwinds of a weak rand and tougher regulation as a consequence of its UK domicile.

Old Mutual has more than 17.5 million customers and employs more than 60,000 people globally.

At Friday's closing share price of 179.7p, the company had a market value of £8.8bn.

It was unclear this weekend what the Old Mutual board's intentions are towards each of the businesses as standalone entities, although a sale of the wealth arm looks inevitable.

Cinven and Warburg Pincus have previously worked together on the ownership of the Dutch cable group Ziggo, and their offer for the Old Mutual division is said to be worth several billion pounds.

Rothschild is understood to be advising the board of Old Mutual, while the company's brokers, Bank of America Merrill Lynch and Goldman Sachs, are also likely to have roles in the restructuring and sale of various assets.

[eurofox] 05/3/2016 18:51

suggests why OML bonds might have returned to par value

[r ball] 05/3/2016 18:38

Breakup value in excess of 260. Recent decline linked to commodity prices not mgt.

[r ball] 05/3/2016 18:37

Opportunist. £2.50 on breakup.

[chinese investor] 05/3/2016 17:13

Imminent !

Chinese Investor (OML) 21 Jan'16 - 12:54
200p Soon !

[spob] 05/3/2016 13:27

FTSE-100 Giant Old Mutual Plots £9bn Break-Up

[dangersimpson2] 16/2/2016 15:01

That petition is a terrible idea. Every trade is a buy and a sell. All trades are reported and some providers report buy or sell based on the published spread. You could force market makers to report which part of a reported trade they took the side of but it would have high costs that would have to be borne by investors either directly or by lower liquidity. We should be doing everything we can to get costs and spread down not forcing a reporting standard that is pointless for investors. The vast majority of trades by volume are on the order book which does not have a market maker so wouldn't even be included. Also it wouldn't stop off market trades being done.

[pixi] 12/2/2016 15:57

Looking good.

[colonelgrim] 08/2/2016 12:14

Would that be the 'up-line' or the down-line Track then?

Logical reasoned posts only please, one liner ramp-master need not apply!

[chinese investor] 04/2/2016 08:49

Back On Track !

[neilyb675] 30/1/2016 13:04

from todays Telegraph:

"But perhaps the most important lesson to glean from the past 30 years of stock market crashes is that even those heavy falls in October 1987 ended up being little more than a stumble in the market’s long-term rise.

The message here is that those who hold their nerve, investing steadily and regularly, should be able to ride out the storms, particularly when you consider the added power of reinvesting dividends."

[chinese investor] 29/1/2016 18:54

Recovery Continues !

[neilyb675] 29/1/2016 14:40

1-6-8

LIVE

[chinese investor] 29/1/2016 09:26

Recovery Continues !

[piefacefrank] 25/1/2016 09:42

BUY LEG AT A 50% DISCOUNT