A healthy dose of M&A

THE LEADER

The completion of F&C's £53.6m takeover of Thames River last week was not the first case of cannibalism among UK asset managers this year, and it is unlikely to be the last.

Analysts foresee more M&A – or at least the ‘A’ part of it – this year, and some allocators say a bout of consolidation will do the industry good. Schroders bought 49% of RWC Partners in June, and Man Group’s offer of $1.6bn (£1.04bn) for Mayfair-headquartered, though US-listed rival GLG Partners was approved by shareholders last week. Meanwhile, activist outfit Sherborne Investors has boosted its stake in F&C to 9.1%, though it is not certain this will end in M or A. All the while, US hedge fund activists Greenlight Capital and Pershing also sit on F&C’s share register. Comment...