Man Group Jumps on Speculation of Takeover Offer From U.S. Bank
Man Group Plc, the hedge-fund manager that’s buying GLG Partners Inc., rose the most in five weeks amid speculation that an unidentified U.S. bank may make an offer for the firm.
Man Group jumped 5.1 percent to 249.8 pence at the close of trading in London. The shares have risen 16 percent this week. George Trefgarne, a spokesman for London-based Man Group, declined to comment.
“There is vague talk a U.S. bank may be interested in bidding for them,” said Manoj Ladwa, a London-based senior trader at ETX Capital. “The stock has been performing very well over the last few days and it is backed up by volumes.”
The world’s largest publicly traded hedge-fund manager agreed in May to buy New York-based GLG for $1.6 billion to widen its range of funds. The firm said the acquisition would create a company with about $63 billion in assets, easing its dependence on Man AHL Diversified Plc, an investment program that accounts for more than half of Man’s holdings.
AHL is about 7 percent from so-called watermark level, when Man Group starts receiving performance fees, Man Group Chief Executive Officer Peter Clarke said in September. AHL Diversified’s daily reported fund is up 4 percent this month, Bank of America Corp. analyst Philip Middleton said in a note to clients today.
The program “seems to be having a purple patch,” Middleton wrote. “This would leave the strategy close to performance fee territory and even, in all likelihood, actually generating fees on some products.”
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