GLOBAL - The Henderson Group has pulled out of the race to buy the UK arm of fund manager Gartmore, announcing it had decided not to pursue a "potential strategic acquisition".
The group said the acquisition terms put forward by its board had not been accepted by the sellers.
Nationwide Mutual, the owner of Gartmore, put Gartmore Investment Management on sale late last year, announcing it was considering strategic options.
It is believed the move was motivated by Nationwide’s decision to focus on its US domestic business following a review of its five-year ownership of the UK Gartmore business.
A spokeswoman for Henderson would not comment on the identity of the potential purchase, but confirmed the group had not considered any acquisitions other than the one the group had pulled out of.
Henderson said it would now continue with its plan to this year return surplus capital of approximately £200m to shareholders. It would update the market in due course on the timing and method of this planned capital return.
Schroders and Hellman & Friedman are rumoured to be the last two firms in the running for the sale. A spokeswoman for Schroders would not confirm that Schroders was among the two in pole position, but said the group had been looking for strategic bolt-on acquisitions for its business.
Hellman & Friedman declined to comment. A decision on the sale has been tentatively scheduled for the end of this month.
By Lisa Haines
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