• Text size      
  • Send this article to a friend
  • Print this article

F&C votes to accept Canadian takeover

F&C Asset Management's shareholders voted 99.6% in favour of a £708 million takeover by Bank of Montreal, and shares will be suspended after May 6.

The deal brings down the curtain on UK ownership of Edinburgh's former Ivory & Sime, based in Charlotte Square for more than 100 years until its takeover by Friends Provident in 1997. Former I&S managers are still at the core of F&C's Edinburgh operation, which runs three of the group's closed-end funds including British Assets.

Friends Ivory & Sime briefly became Isis Asset Management and then F&C after merging with the self-managed Foreign & Colonial trust, and was floated on the stock market in 2004.

Activist investor Edward Bramson became executive chairman in 2011 after unseating Nick McAndrew. The Canadian bid at 120p a share landed in January, with the backing of biggest shareholder Aviva, though 10.3% shareholder Standard Life said it felt the valuation favoured the Canadians and signalled it was hoping for a counter-bid.

US hedge fund Elliott Management acquired derivatives equivalent to a stake of more than 10%, fuelling speculation over a potential bidding war.

But in February F&C warned it faced "significant headwinds" as it said assets had crashed to £82 billion in 2013 after an outflow of £19bn, killing hopes of a higher offer.

Kieran Poynter, who became chairman of F&C last summer after Mr Bramson stood back, had said the offer represented "an attractive valuation for F&C shareholders and a positive outcome for employees and clients".

Contextual targeting label: 
Finance

Commenting & Moderation

We moderate all comments on HeraldScotland on either a pre-moderated or post-moderated basis.
If you're a relatively new user then your comments will be reviewed before publication and if we know you well and trust you then your comments will be subject to moderation only if other users or the moderators believe you've broken the rules

Moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours. Please be patient if your posts are not approved instantly.

222054