Friday, 29 April 2016
Last updated 10 hours ago
Oct 11 2012 | 1:46pm ET
BlackRock and a group of investors is mulling a £2.5 billion bid for the Man Group, a British tabloid reports.
According to the Daily Mail, BlackRock and "friends" might be readying an offer for the publicly-traded hedge fund giant, which has hit on hard times. BlackRock owns 9.35% of Man and has long been mooted as a possible bidder for the firm.
A £2.5 billion offer would represent a huge premium to Man's current share price. The offer would be about £1.40 per share, Man has been trading at below £0.90 per share and as recently as June was as low as £0.61.
Man shares shot up to as high as £0.96 per share after the Mail's report yesterday, but ended trading today back below £0.90. And while the rumors put some juice in Man shares, some remain skeptical.
"We do not see the logic of acquiring a company whose funds, in our opinion, are underperforming key benchmarks and experiencing net outflows," RBS Capital Markets analyst Peter Lenardos wrote in a note yesterday. "Further, we continued to believe that AHL," Man's flagship strategy, "is priced above competitors despite having weaker performance." Lenardos pronounced a BlackRock bid "unlikely."
"Man will provide the market with a third-quarter update on Oct. 18," the Mail wrote. "It could possibly be its last as an independent company."