Fund manager Perpetual is on the verge of being taken over by US based rival Amvescap the Times reports today.
The deal is reportedly worth £1.3bn. Perpetual founder and leading shareholder Martyn Arbib has been offered a premium of £45 per share by Amvescap, valuing his family's holding at £587m.
Amvescap has more than £250bn under management while Perpetual has been valued at £1.04bn. After the announcement was made today Perpetual shares jumped 597p to £41.87.
Perpetual has languished recently, and has been accused by industry sources as missing the boat on the technology boom. Its flagship funds have suffered resulting in a withdrawal of business from IFAs.
US based Amvescap enjoyed strong growth in the first quarter, but is struggling with an identity problem in this country. That would be easily resolved with the acquisition of Perpetual which is well-known in the UK.