Invesco will find it hard to stay independent
Tuesday 08 August 1995
Charles Brady, chairman of Invesco, did it yesterday, after the announcement that Peregrine is to sell nearly all of its 24 per cent stake into the US market. Before him, Hugh Stevenson of Mercury Asset Management said much the same thing after the little-lamented departure of its dominant shareholder, SG Warburg as it then was.
However touching such expressions may be, independence may be difficult to maintain in an environment that sets a small group of attractive and available fund management businesses alongside a large, salivating pack of potential suitors.
Just last week NatWest Group reiterated its strong interest in bolstering its investment management activities. Across the Atlantic there are numerous businesses, GE Capital being just one of the best known, keen to strengthen their hand in European fund management.
Fund management does not come cheap these days. The goodwill alone is an awesome financial obstacle to any takeover. None the less, fund management's capacity to provide a steady stream of earnings has begun to exert an irresistible attraction on top bankers and insurers seeking relief from the roller-coaster nature of their businesses.
It is surely only a matter of time before the market witnesses the takeover of one of the major UK fund managers. Mercury must top the list, as it is both the premium business in this country and now fully available on the open market. Gartmore still has Indosuez holding a dominant stake; but, given the tribulations of the French bank, this cannot be held to be an insurmountable barrier to someone willing to pay a full price.
Now Invesco looks set to join this select group of the eligible. Its attaction is rather different, in that its strength is overwhelmingly in the American market. Peregrine, Lee Ka Shing's securities group, is a canny operator with a knack for selling at the top. Even so, Ivesco remains an attractive proposition, as yesterday's 38 per cent jump in pre-tax profits shows. It would be surprising if it were still independent a year from now.
- 1 BBC told new political editor must be 'impartial' with Nick Robinson reportedly stepping down
- 2 Humans of New York image of crying gay teen receives best response yet from Ellen DeGeneres
- 3 Number of young homeless people in Britain is 'more than three times the official figures'
- 4 Motorists taunt suicidal woman on bridge and tell her to 'get on with it'
- 5 The map showing the most dangerous tourist destinations in Europe, according to the Foreign Office
BBC told new political editor must be 'impartial' with Nick Robinson reportedly stepping down
Isis propaganda video shows 25 Syrian soldiers executed by teenage militants in Palmyra
Humans of New York image of crying gay teen receives best response yet from Ellen DeGeneres
Number of young homeless people in Britain is 'more than three times the official figures'
The map showing the most dangerous tourist destinations in Europe, according to the Foreign Office
More Britons believe that multiculturalism makes the country worse - not better, says poll
Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
Greece crisis: IMF was pushed around by Angela Merkel and Nicholas Sarkozy – and now it is being humiliated
'I wish the BBC would stop calling it Islamic State' – David Cameron unleashes frustration at broadcaster
Forget little green men – aliens will look like humans, says Cambridge University evolution expert
Girl, 7, stares down hate preacher at Ohio festival with pro-LGBT rainbow flag gesture
iJobs Money & Business
£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...
£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...
£20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....
£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...