Fund manager Harwood Capital has dropped its bid to take over financial advice firm Frenkel Topping.
In a market announcement this morning (February 13) Harwood confirmed it no longer intended to make an offer for the listed company, despite a "preliminary approach" being made last month which could have lead to a deal.
At the end of January Frenkel Topping confirmed this approach had led to significant movement in its share price, rising from 36p to 47p over a period of five days.
Frenkel Topping specialises in managing the assets of clients who have received compensation payments and frequently acts as an expert witness in court cases.
Under City rules Harwood Capital, which is run by veteran investor Christopher Mills, is now barred from bidding for the advice firm for six months, unless special circumstances allow.
In its own statement this morning, Frenkel Topping confirmed discussions about a possible offer had taken place between the two companies, but these had now been terminated.
Richard Fraser, Frenkel Topping's chief executive, said:"We have made significant progress in the last two years and delivered excellent results; with [assets under management] at a record high and a healthy pipeline of new business wins, we are strongly positioned to continue delivering further growth and value for our shareholders.
"The board has a fiduciary duty to look at any serious interests in the business and it is a testament to the company and its achievements that we received this interest."
Frenkel Topping's share price has dropped 6.8 per cent since the announcement, down from £4.55 to £4.24.
Frenkel Topping's AUM reached £897.9m as of the end of 2019 and revenues are expected to exceed £8.5m.
rachel.mortimer@ft.com
What do you think about the issues raised by this story? Email us on fa.letters@ft.com to let us know.
