HSBC has estimated that Dresdner will attract a maximum of £175m for the rollover vehicle of its £43...
HSBC has estimated that Dresdner will attract a maximum of £175m for the rollover vehicle of its £430m Charter European Trust.
Charter is being wound up following an unsuccessful bid by Henderson Global Investors to acquire it as a rollover vehicle for its split cap Henderson Eurotrust.
Hendersons' proposals received strong backing from three of Charter's largest institutional shareholders, AMP, Equitable Life and Standard Life, who held 29.2% of the shareholder base. The three are now looking to take a cash exit from Charter. Charles Cade, investment trust analyst at HSBC, said he believes other institutional shareholders are also likely to leave.
Simon White, head of investment trusts at Dresdner, said there are a significant number of private client brokers, individuals and small institutions who want pan-European exposure through an investment trust and feel now is the wrong time to pull out of the sector.
He added: 'We are doing all we can to persuade that part of the shareholder register to invest in the rollover vehicle, without the expensive debt and overhang of reluctant institutional shareholders.'
On the wider implications of the Dresdner victory, Cade said: 'As the share registers become more and more retail focused, aggressive corporate action is likely to become increasingly difficult. Of course, this does mean that the sector will simply stand still, as illustrated by the number of current corporate deals.'
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