Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Janus Share Options Set at 33% Premium in Dai-Ichi Deal

Aug. 17 (Bloomberg) -- Share options in Janus Capital Group Inc., the Denver-based fund company struggling to reverse investor defections, were set at a 33 percent premium to the price before a deal was announced to sell a minority stake to Tokyo-based insurer Dai-ichi Life Insurance Co.

Dai-ichi, which agreed Aug. 10 to purchase between 15 percent and 20 percent of Janus shares within one year, will pay $10.25 a share if it exercises the options, according to a regulatory filing. The insurer bought about 743,531 shares, or 0.4 percent of Janus shares in the market in the past week, at an average price of $8.42, according to the filing.

“It doesn’t mean they have to exercise that option,” Michael Kim, an analyst with Sandler O’Neill & Partners LP in New York. “They have the flexibility to buy the entire 15 percent through the open market.”

Janus Chief Executive Officer Richard M. Weil, a former executive at Pacific Investment Management Co., the bond-fund manager co-founded by Bill Gross, is partnering with Dai-ichi Life as falling markets and client withdrawals erode assets and the fees charge for overseeing them. Janus lost 47 percent of its market value over the past three years through Aug. 9.|

Janus rose 0.2 percent to $8.46 at 9:46 a.m. in New York trading. The stock advanced 34 percent this year, compared with the 13 percent gain in the 20-member Standard & Poor’s index of asset managers and custody banks.

Dai-ichi, Japan’s second-largest life insurer, also agreed to invest $2 billion into Janus funds and help distribute them in Japan.

To contact the reporter on this story: Christopher Condon in Boston at ccondon4@bloomberg.net

To contact the editor responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.