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Rensburg rejects Rathbones for Carr Shepherd takeover

Private client manager Rensburg’s rejection of Rathbones’ offer in favour of a reverse takeover of Carr Shepherd Crosthwaite could secure its shareholders a better deal.

The Rensburg board rejected Rathbones’ offer of 610p a share after Rensburg shares were suspended at 500p last week. Liontrust and Framlington fund managers have criticised the reverse takeover that will see Rensburg pay a premium to become a subsidiary of Investec, with only 36 per cent control of the business.

But Altium speciality finance analyst Jeremy Grime says Rensburg shareholders will effectively own 36.4 per cent of the combined group’s assets, 3.5bn, in the Carr Shepherds deal compared with 27.8 per cent, 3.3bn, under the Rathbones’ proposals as Rathbones prices its funds more expensively. Grime says:”It seems a very strange move, paying a premium to give away control of your business but the two offers are really not miles apart and both are dilutive to Rensburg.”

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