F&C Agrees to £708m Bid from Canadian Asset Manager

UPDATE: F&C has agreed its sale to BMO Global Asset Management for 120p per share--a premium of 30%

Holly Cook 28 January, 2014 | 2:10PM
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Having announced on Monday that it had received an offer from Canada's BMO Financial Group, F&C Asset Management (FCAM) has on Tuesday confirmed that it has agreed to the bid that values the UK fund house at £708 million.

Shares in F&C topped the FTSE 350 on Monday, rising 25% to close at 116.4p and signalling that the market expected the deal to go through. The 120p-per-share price tag is more than 30% above F&C's Friday closing price. F&C shareholders will also receive the 2p annual dividend announced for 2013. 

F&C is a business that has undergone considerable change over recent years following a series of acquisitions and mergers. Activist investor Edward Bramson built a significant stake in the business in 2011 and embarked on a strategic review that resulted in the ousting of F&C chairman Nick MacAndrew and significant cost-cutting measures that impacted back-office operations. 

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
F&C Investment Trust Ord867.00 GBX0.12Rating

About Author

Holly Cook

Holly Cook  is Manager, Morningstar EMEA Websites