View more on these topics

City of London anticipating Gartmore MBO

The City of London is anticipating the announcement of a £450m management buyout by fund manager Gartmore.


The fund manager has been left on a limb by the continued speculation over the future of owners NatWest, which is the subject of a £22bn bid from Bank of Scotland, which led to the withdrawal of a bid by the bank for Legal &General.


L&G would have been given the responsibility for investment management within the new group.


Rumours of an MBO, which are denied by senior management, have been circulating high levels of the company for some days.


But City insiders say the move is the only answer to the firm&#39s predicament.


A source close to Gartmore says: &#34It is the only way the way it can prevent its star fund managers from leaving. They have been unsettled by everything that has gone on and would need a type of &#39Golden Hello&#39 to stay. This makes a trade sale unlikely because without them there is pretty much nothing there to buy.&#34


Analysts say the price, at just under 1 per cent of Gartmore&#39s £52bn assets under management, is low but the firm would never approach the 3 per cent price paid for Mercury Asset Management by Merrill Lynch because of poor performance.


But its European, UK Smaller Companies and Japanese funds have performed well and their key staff would be vital for the company&#39s future.


Gartmore has denied its joint chief executives Andrew Brown and David Watts have reversed a decision to depart.

Recommended

Treasury plays down mortgage regulation

The Treasury has played down hopes of statutory mortgage regulation according to the Financial Times.The FT says the senior civil servant in charge of financial services at the Treasury Paula Diggle suggested government intervention would create a further barrier to new entrants and would slow the home buying process.Diggle dismissed calls for regulation from lenders […]

Premier offer 1 per cent discount on smaller companies

Premier Portfolio Managers is offering investors in its Small Companies Fund a 1 per cent discount on the initial charge until January 1, 2000.According to the Premier the offer is to mark the above average performance of the fund in the year to October 1.The fund has a pre-discount initial charge of 5 per cent […]

Financial Options and Friends Prov team up over stakeholder

Financial Options is teaming up with Friends Provident to offer its members &#39stakeholder style&#39 pensions over the internet.The national IFA network says its aiming to offer its members and those of Investment Options and Kestrel Financial Management, a &#39stakeholder style&#39 pension well in advance of the proposed April 2001 launch date.It believes the Government needs […]

Gartmore chief execs withdraw their resignations

Gartmore has announced its two chief executives have reneged on their plans to resign from the fund manager according to the Financial Times.Andrew Brown and David Watts both tendered their resignations in the aftermath of parent company NatWest&#39s proposals to buy Legal & General.The withdrawal of their resignations has raised speculation that Gartmore&#39s senior executives […]

Value for money in DC pensions

The Pension Policy Institute (PPI)’s recent report “Value for money in DC pensions” tries to identify factors by which people can assess whether their pension offers fair value for money (VFM). Fiona Tait provides an overview of the findings. Positive Outcomes It is extremely hard to assess VFM in a pension. Press activity naturally focuses […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment