Thursday, 30 June 2016
Last updated 16 min ago
Dec 14 2012 | 12:09pm ET
The Man Group's acquisition of GLG Partners may have netted it at new CEO, but at what price?
The world's largest publicly-traded hedge fund may face a big new write-off stemming from the 2010 purchase next year, the Financial Times reports. The write-offs, which could be between US$500 million and US$1 billion, would likely come in February, when Man releases its full-year results.
The news comes the same week that Man announced that former GLG co-CEO Emmanuel Roman would succeed current CEO Peter Clarke, who will leave the post in February.
Man took a US$91 million write-down in June on the GLG deal due to dashed expectations of assets growth and strong performance. At the time, Man suggested that further write-downs of between US$499 million and US$1.6 billion could occur on the GLG deal under worst-case scenarios.
No final decision on a write-down has been made, and it could be subject to GLG's performance this quarter. Man recently restructured itself to boost its distributable reserves to US$2 billion, and has some US$1.5 billion in goodwill on its accounts related to GLG.
Man bought GLG for US$1.6 billion, promising profitable synergies which have yet to come to pass.