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News > International
Amvescap in Trimark talks
May 8, 2000: 6:32 a.m. ET

UK-based fund manager eyes Canadian buy; linked to British purchase
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LONDON (CNNfn) - Amvescap, the London-listed U.S. fund manager which owns the Aim Management business, said on Monday it was in takeover talks with Toronto-based Trimark Financial and was also linked with a bid for U.K. mutual fund firm Perpetual.

Amvescap, the world's second-largest listed fund manager, derives 90 percent of its earnings from the U.S. market and has embarked on a series of acquisitions to broaden its global presence.

Amvescap, formed in 1997 from the merger of Britain's Invesco and the U.S.-based Aim Management Group, has around $400 billion in assets under management. Analysts said it had struggled to build recognizable brands outside the U.S. market.

However, Amvescap (AVZ) shares slumped 7 percent to 884 pence after it confirmed it was in talks that could lead to a cash and share bid for Trimark. The acquisition would double its Canadian assets under management to around $23 billion.

graphicThe Wall Street Journal reported that Amvescap was prepared to offer C$27 a share in stock and cash for Trimark, valuing the firm at $1.81 billion, an 8 percent premium on its Friday close.  Trimark reported net earnings of $59.5 million on sales of $403.1 million last year. Amvescap declined to comment on the report.

Separately, Perpetual (PER) shares jumped  almost 17 percent to 4,270 pence after it said  it was in talks that might lead to an offer. It did not identify the suitor, but the Financial Times fingered Amvescap. The surge in Perpetual's shares boosted its market value to £1.12 billion ($1.87 billion).

Analysts suggested that Perpetual's strong name recognition would help it to gain a foothold in Britain. Back to top

  RELATED STORIES

Amvescap tops 3Q forecast - Oct. 28, 1999
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