Invesco's warrant offer removes last remnant of Slater's time

INVESCO, the fund manager formerly known as Invesco MIM, Britannia Arrow and Slater Walker Securities, is getting rid of the last vestige of the time when Jim Slater ran the group by buying in its pounds 2.3m worth of perpetual warrants issued 22 years ago, writes Jason Nisse.

At a meeting to be held today, investors in the highly unusual securities are expected to vote for a proposal that will allow Invesco compulsorily to purchase the warrants.

The group has made a generous offer, giving warrant holders four shares for every three warrants held at a price of 50p each when the warrants actually only allow the holders to convert at 140p, although they can do it at any time. Invesco's shares stood at 143p yesterday, thus valuing the warrants at 124p each compared with a closing price of 110p.

Michael Perman, Invesco's company secretary, said the warrants were issued in 1971 as a kicker to a fund-raising by Slater Walker Securities. 'There is nothing else like them in any listed company,' he said. 'Every single other warrant is time-sensitive, but these are not, so it is impossible for brokers to accurately price them.'

Mr Perman said Invesco was willing to pay over the odds because it would save thousands of pounds in administration costs.

However, not everyone is happy about the offer. George Brett, an 18- year-old business studies student, was given some when he was a child. 'My family wish to continue as warrant holders as I have a life expectancy of more than 50 years.'