Activist investor Elliott Associates has built its stake in F&C Asset Management to 20%, ahead of a £700m deal to sell the firm to a Canadian bank.
F&C announced on 27 January it had agreed a 120p per share cash offer with Bank of Montreal (BMO), valuing the business at £708m. Shares jumped 22% on the day of the news. However, second-largest shareholder Standard Life said the deal does not represent good value for F&C's investors and they are open to a counter-offer. The hedge fund increased its stake to 11% on 26 February, steadily increasing its holding to cross the 20% threshold on Friday. If Elliott continues to increase its stake, it could potentially push BMO towards a higher offer, or agitate for a rival bidder, thought...
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