MAM's escape might prove short-lived
Thursday 11 May 1995
Under the deal, the 75 per cent of MAM shares owned by Warburg will be distributed among Warburg shareholders, giving MAM a market value estimated to be over £1.5bn. But Mercury's wide distribution in the market will expose it to predators.
Speculation quickly returnedin the City that MAM's independence may not last long, given the keen interest among several big financial players to buy their way into the lucrative fund managment business.
There are few large shareholder-owned fund managers in the UK, making MAM a prime target.
NatWest Group is known to have its eyes on MAM, while GE Capital of the US has also made plain its desire to build up its fund management operations in Europe.
Sir David Scholey, chief executive and chairman of Warburg, said yesterday: "Mercury is becoming a widely held and extremely independent public limited company with a very strong capital base and very strong profits. There is no reason for that not to continue."
Relations between Mercury and Warburg had soured dramatically of late, with the fund manager complaining its parent did not have the financial backing it wanted. MAM went openly on the offensive, saying it wanted to be rid of Warburg, after the failure of the planned merger between Warburg and Morgan Stanley late last year.
Despite its strong reputation, MAM is a maturing management business, heavily dependent on one market, UK pension funds. If it wanted to diversify abroad, it would probably have to call on the capital of a bigger parent. But any bidder would have to dig deep, with MAM shares currently at something like 20 times earnings.
Emergency call 'started off dumb, but got pretty serious'
Thought you'd seen it all after the Jeremy Paxman interview?
Greatest mystery about the hit BBC1 show is how it continues to be made at all, writes Grace Dent
Far-right organisation has defended its actions on Facebook
Animal welfare charities have urged the boy band to cut the scenes
Argentinian scored 'rabona' wonder goal for Tottenham in Europa League – see it here
- 1 This 'woman calls police to order pizza' story isn't going where you're expecting
- 2 Watch what happened when food critics were unknowingly served McDonald's
- 3 Jimmy Carr's controversial Oscar Pistorius joke goes a bit too far at the Q Awards
- 4 Ottawa shootings: Bruce MacKinnon's cartoon is the perfect tribute to soldier Nathan Cirillo
- 5 Of course, teenage girls need role models – but not like beauty vlogger Zoella
Isis releases first video showing the stoning of woman accused of committing adultery as her father shouts 'don't call me Dad'
FCKH8: YouTube reinstates provocative anti-sexism video showing young girls swearing
Diwali: What is the festival of lights – and how is it celebrated around the world?
Jimmy Carr's controversial Oscar Pistorius joke goes a bit too far at the Q Awards
Ottawa shootings: Bruce MacKinnon's cartoon is the perfect tribute to soldier Nathan Cirillo
Of course, teenage girls need role models – but not like beauty vlogger Zoella
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Support for EU membership 'at highest level since 1991' with most Brits wanting to stay 'in'
Thousands with degenerative conditions classified as 'fit to work in future' – despite no possibility of improvement
Residents should throw a street party and mix with immigrant neighbours, councils told
Attacks on 'Ukip Calypso' show how skewed people’s priorities are
iJobs Money & Business
£24000 - £28000 per annum + bonus & benefits: Ashdown Group: IT Business Syste...
£50000 - £90000 per annum + benefits: Ampersand Consulting LLP: Markit EDM (CA...
£100 - 125k: Guru Careers: A CTO / Chief Technology Officer is needed to join ...
Competitive (DOE): Guru Careers: A COO / Chief Operating Officer is needed to ...