The price, which includes a value for Touche Remnant's pounds 18m of cash, is about pounds 5m less than forecast by Andrew Ripper of Smith New Court when the deal was announced two months ago. Mr Ripper pointed to Touche Remnant's operating losses of pounds 3.1m in 1991 and pounds 2.1m in 1990 as the reason for the lower price.
The deal will create a group managing about pounds 10bn. With the addition of the TR trusts, Henderson will become the UK's biggest investment trust manager, with pounds 2.4bn in 18 funds.
Societe Generale has agreed to take on the 22-year lease of Touche Remnant's London offices, saving pounds 2.5m a year and facilitating the firm's move into Henderson's premises.
Paul Manduca, TR's chairman and the proposed deputy managing director of the enlarged group, said there was scope for further savings in marketing and back office areas. Mr Ripper warned: 'The people managing unit trusts or pension funds at Touche will be lucky to have a job in 12 months' time.'
TR's investment trusts will support the deal in return for a reduction from three to two years in the notice period they must give before changing investment managers. The deal could be scuppered if the FT-SE 100 index were to crash below 2,170.
Henderson rose 47p to 685p.Reuse content