New Star lessons need to be heeded

first_img New Star lessons need to be heeded Share KCS-content whatsapp THE TAKEOVER of Gartmore by Henderson isn’t the first time it has rescued a struggling rival.Two years ago Henderson purchased the stricken New Star fund, which led to 25 per cent of assets being withdrawn amid the takeover as portfolio managers departed.Some analysts fear Henderson could find itself in the same situation with the Gartmore takeover.Shore Capital analyst Danielle James said: “People don’t necessarily like the cultural change. Gartmore employees might view this as positive as, they might have viewed themselves on a sinking ship.“Henderson have got a track record for doing these deals… ultimately that was successful but there was quite a long teething period.”However, sources close to Henderson believe the Gartmore deal should not suffer the same pitfalls.As a worse case scenario the company predicts 20 per cent of its assets will disappear as a result of the deal, some five per cent less than at the time of New Star.TIME LINE | THE FALL OF GARTMOREJanuary 2011Henderson purchases Gartmore in a share deal worth £335m. Both firms see a share price lift.November 2010Gartmore says Roger Guy is set to retire from day-to-day management, and that chief investment officer Dominic Rossi will resign to join another manager. Gartmore appoints Goldman Sachs to carry out a strategic review. Shares in the fund manager shed a fifth of their value.July 2010Gartmore star manager Guillaume Rambourg quits to focus on FSA probe, leading to further falls in share price.June 2010UK financial regulator FSA says it will launch its own probe into Rambourg, shares fall.May 2010Gartmore says it had seen more than £1bn of withdrawals from the funds it oversees in the wake of Rambourg’s suspension.April 2010Rambourg returns to Gartmore as analyst, share price leaps.March 2010Gartmore suspends Rambourg as it carries out an internal investigation for breach of internal procedures by directing dealers to use favoured brokers. Shares fall by 11 per cent.December 2009Gartmore lists on the market for 220p per share, shares sink to 212p on its market debut.Simon WarshawUBSINVESTMENT bank UBS led the talks for Henderson as sole corporate broker, sponsor and joint lead arranger and joint bookrunner.Simon Warshaw head of investment banking at UBS, led the deal as lead financial adviser. Warshaw has spent 24 years at UBS, and helped found the bank’s media sector group. He has featured on the Guardian’s Media 100 list for his role in Lord Carter’s Digital Britain report. Ondra partners, the boutique set up in the wake of Lehman’s collapse also acted for Henderson, with Michael Tory and Stewart Bennett as part of the team. Goldman Sachs advised Gartmore. Wednesday 12 January 2011 8:34 pm Tags: NULL Show Comments ▼ by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItBetterBe20 Stunning Female AthletesBetterBeAlphaCute30 Rules That All “Hells Angels” Have To FollowAlphaCuteDefinitionDesi Arnaz Kept This Hidden Throughout The Filming of ‘I Love Lucy’DefinitionTaonga: The Island FarmThe Most Relaxing Farm Game of 2021. No InstallTaonga: The Island Farm whatsapplast_img

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