The future of Murray Johnstone as an asset management house is uncertain after its US parent, United...
The future of Murray Johnstone as an asset management house is uncertain after its US parent, United Asset Management (UAM) was purchased by Old Mutual for $1.46bn.
Old Mutual has already made it clear to Investment Week that it acquired UAM for its US presence and not for its ownership of the Scottish investment house.
James Poole, director of investor relations at Old Mutual, said: "We haven't made an offer to buy UAM in order to get our hands on Murray Johnstone. We did it to buy into the US market. It just happens that UAM owns Murray Johnstone."
Old Mutual said speculation that Murray Johnstone could be merged with its other asset management capabilities in the UK, which include Capel Cure Sharp (CCS), was premature.
Nor would it comment on the possibility of the sale of the Scottish house, which has just over £4bn under management, or whether a management buy-out is likely.
UAM has a poorly performing share price which stood at $21.12 on 22 June 1999 and slumped to $13.25 on 18 February 2000.
This reflects in part the market's distrust of UAM's structure of 42 separately operating subsidiary companies.
Poole said that it was far too early to discuss details of how it plans to incorporate the universe of 42 separately operating companies in the UAM group into Old Mutual.
He said: "We are not starting by thinking that we are going to sell any part of UAM off. We want to talk to all 42 affiliated companies and that includes Murray Johnstone."
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