F&C Asset Management is in “advanced discussions” with Canadian financial services company BMO Financial Group following a proposed full takeover bid by BMO.
In a notice to the stock exchange today F&C said BMO had proposed a bid of £1.20 per share, which would value the company at roughly £697m based on the 581m shares currently in issue. The proposed offer would be for all shares currently in issue, amounting to a full takeover if finalised.
The statement from the fund manager said: “F&C and BMO are in advanced discussions about the details of the possible offer and the board of F&C has indicated to BMO that it is likely to recommend a firm offer at the offer price.”
No firm offer has been made and BMO must decide whether it intends to formalise the bid by February 24.
F&C has undergone a period of change in the past three years following activist investor group Sherborne Investors ousting of F&C’s board in February 2011. Since then Edward Bramson, until recently the company’s chairman, has led a cost-cutting drive across the business.
