Thursday 16 February 1995
The Trust says it will look at a spread of equity and gilts, but, with extortionate advisers' fees on such a complicated programmed deal threatening to eat up a fraction of the capital it may look for an easier investment.
Buying British Investment Trust, the £850m trust trading at an 11 per cent discount to net asset value, could provide a simple solution.
It is 85 per cent owned by the Coal Board pension fund, which faces a £60m hole in its balance sheet if it sells its stake.
After the pension fund's failed 1977 bid for BIT, an acquisition is impractical. Therefore the fund could hope to sell its huge stake at a premium to some outfit like Wellcome Trust, which might obtain a well-invested portfolio at a few per cent short of its net asset value.
In addition, Wellcome would inherit a controlling stake in the prestigious Edinburgh Fund Managers.
"It is a tempting idea," said a source close to the trust.
- 1 President of Argentina adopts Jewish godson to 'stop him turning into a werewolf'
- 2 The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
- 3 Stoke-on-Trent becomes first British city to be classified as 'disaster resilient' by the United Nations
- 4 Sir Winston Churchill’s family begged him not to convert to Islam, letter reveals
- 5 UK weather: 'Coldest night of the year' tonight as freezing temperatures plummet to -10C
Millions of Britons struggling to feed themselves and facing malnourishment
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
Nigel Farage: Ukip leader named 'Briton of the year' by The Times
Immigrants make UK racist, says Ukip councillor Trevor Shonk
iJobs Money & Business
Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...
Not specified: Selby Jennings: Quantitative Research | Global Equity | New Yor...
Not specified: Selby Jennings: SVP Model Validation This top tiered investment...
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...