Aberdeen up as takeover talk spreads

SHARES in Aberdeen Asset Management surged on speculation that the struggling fund manager is sounding out potential buyers.

Europe’s second largest fund group, which runs £307bn of savings and investments, is reeling from the slowdown in China and emerging markets.

This turmoil has helped wipe 19pc off its share price so far this year, with investors pulling almost £19bn out of its funds in the first half of the year.

The exodus is said to have hampered Aberdeen’s ability to pay bonuses and made it harder to retain key staff.

According to the Financial Times, its chief executive Martin Gilbert has made informal approaches to several rivals in recent months. Private equity group KKR and Blackstone, as well as Credit Suisse, which is focusing on expanding its asset management business, have been touted as potential buyers.

Insiders at Aberdeen insisted the firm is not up for sale.

A spokesman said: ‘In his 32 years running Aberdeen, Martin Gilbert has never approached anyone, formally or informally, about buying the business’. But the prospect of a sale gained traction in the stockmarket, with shares rising 10.3p to 361.7p. This made Aberdeen the biggest riser in the FTSE 100 yesterday, up nearly 3pc.

If Gilbert is seeking a buyer, it would mark a rapid capitulation after completing the £550m purchase of Scottish Widows Investment Partnership from Lloyds last year. The rationale behind the deal was to reduce Aberdeen’s reliance on emerging markets, as SWIP focuses more on UK and European companies.

The firm also bought US private equity firm Flag Capital this year to expand its business.

Garry White from broker Charles Stanley said the speculation ‘should be taken with a pinch of salt’.