(May 29 – 11:25 ET) – Amvescap has abandoned its bid for UK-based fund manager Perpetual, The Financial Times is reporting today.
Amvescap in the midst of buying Canadian fund giant Trimark Financial Corp. FT says the company made a strategic decision to promote its own funds rather than making another big name acquisition. Amvescap isn’t commenting on the report.
The firm initiated simultaneous discussions with Perpetual and Trimark earlierthis month. It announced its still pending deal for Trimark at $27 per share in a complex mix of cash, stock and debentures on May 9. Apparently the price for Perpetual was too rich, however.
Perpetual’s founder Martyn Arbib is said to be interested in cashing out some of his family’s 40% stake in the firm. A similar situation motivated the Trimark deal. FT says Perpetual’s advisor Merrill Lynch is still shopping the firm, likely to European suitors.
-IE Staff