UK/CANADA - AMVESCAP has "unanimously concluded" that an indicative approach by the Canadian CI Fund Management to acquire the company's lucrative Canadian operations, AIM Trimark, is to be turned down.
AMVESCAP, which also owns the Invesco Funds Group, also publicly rejected an attempt by the North American outfit to acquire the whole of the business because the board “doubted that CI had the ability to make them a firm offer.”
The Financial Post first reported that CI was considering the purchase of AMVESCAP for as much as C$7bn.
In a statement, AMVESCAP responded that it did not believe that a CI takeover of the Canadian operations was in the best interests of shareholders, and furthermore that it has “doubt” over CI’s ability to finance a takeover of AMVESCAP in total.
CI has C$68bn in assets under management and is Canada’s third largest mutual fund company. If the CI bid to takeover the troubled Anglo-US investment giant is successful, it will make CI Canada’s largest mutual fund company.
AMVESCAP, which has funds under management of $382bn, saw its shares rise by 15% as a result of interest from other potential bidders. Shares closed at 395p on the London Stock Exchange yesterday.
In recent years, regulatory issues in the US and below average fund performance have crippled AMVESCAP’s stock market value.
Earlier this week, CI’s shares hit a six month high.
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