AN institutional shareholder in F&C Asset Management has said a £708 million takeover offer from Bank of Montreal (BMO) is 'at the bottom end' of expectations and suggested a rival bidder could emerge.

The Aviva UK Equity Income fund, run by Chris Murphy, has a 1.6% holding in F&C. Mr Murphy said; "We are supportive of the deal at the moment but it's at the bottom end of the range of our expectations It's a good-quality asset. The price could go up and someone else could look at the business."

Standard Life Investments, which is the second biggest shareholder in F&C with 10.3%, has already said it thinks the BMO offer is low and it was keeping its options open.

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The board of F&C said last month it would recommend accepting the cash offer from BMO.