The board of the £192m Throgmorton investment trust, which has received a merger proposal from rival fund, Gartmore Growth Opportunities, is believed to have held a beauty parade of buyers to try to secure other offers.
Gartmore, which is being advised by the broker Cenkos, made the approach earlier this month after the departure of its long-time fund manager, Roger Whiteoak, and the subsequent installation of Chris St John. Many shareholders were disgruntled by the change, deeming the board's actions dismissive.
Paul Craig, a fund manager at New Star who recently sold his Throgmorton stake, said: "The boards of some of these trusts sometimes seem to forget whose money they are looking after."
The Throgmorton Trust, which boasts one of the biggest retail shareholder bases in the investment trust market, had been trading on a 23 per cent discount to its net asset value prior to the bid. However, the discount has since halved. A spokesman could not be reached for comment.Reuse content