UK - Edinburgh Fund Managers has put itself up for sale after losing one of its last remaining pension fund clients, industry sources claim.
They say the independent firm is currently holding talks with rival fund managers – including Isis Asset Management and New Star Asset Management – about a possible deal.
The sources say EFM’s move was prompted by the loss of a £35m UK equity mandate from the £1.9bn City of Edinburgh Council Lothian Pension Fund.
Industry insiders say that without the Lothian money, EFM has too high a cost base to continue on its own.
Falling markets and the loss of several key mandates have cut EFM’s assets under management from £7.1bn at the end of January 2002 to just £4.1bn a year later.
EFM’s shares soared 22% on market reports that it was in talks with rivals over a possible takeover boosting the firm’s value to £30m.
EFM said: “The board continues to review its strategic options including discussions which may or may not lead to an offer being made for the company. Shareholders will be updated as appropriate.”
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