The embattled fund manager F&C Management suffered a blow yesterday as its second biggest shareholder said it planned to dump nearly half of its 19.6% stake in the firm, reports The Times.
Eureko, the European insurer, was instrumental in the creation of the fund manager when F&C Management was merged with the Friends Provident-owned Isis three years ago to create the company in its current form.
But yesterday Eureko said it was offloading 9.1 per cent through a placing with institutional investors handled by Morgan Stanley. Eureko said it was selling the shares to free up capital to fuel expansion in central and eastern Europe. Some of the cash will be used to help pay for insurance businesses in Turkey that the company is buying from Garanti Bank.
Eureko said it remained “supportive” of F&C and would agree to keep the rest of its stake for at least 12 months through a lock-in arrangement. It said the sale would not affect the funds managed for it by F&C, which are under mandate until 2014 and "run well".
PAUL WOLFOWITZ RESIGNED as president of the World Bank last night, ending weeks of turmoil over the lavish pay rise he arranged for his girlfriend that triggered the worst crisis in the institution’s history, reports The Times.
Mr Wolfowitz’s departure was announced by the Bank’s 24-member board, which had spent two days negotiating a “face-saving” deal for the embattled president, after an ethics panel found him guilty on Monday of breaking institution rules over the $50,000 (£25,000) a year, tax-free pay rise he negotiated for Shaha Riza, his British-born girlfriend.
In a statement released by the board, Mr Wolfowitz, the former US deputy Defence Secretary and a controversial World Bank head after his role as one of the chief architects of the Iraq war, said that he would resign on June 30.
PRUDENTIAL, BRITAIN’S SECOND biggest insurer, left open the door to a possible breakup yesterday in the face of pressure from some big City investors to boost the company's performance, reports The Guardian.
The chairman, Sir David Clementi, told the Pru's annual meeting that while the board supported the current structure of the group, it would keep reviewing the situation.
Pru conducted a wide-ranging review of its operations last year and published the result in March, resulting in a streamlining of its UK arm but no disposals other than loss-making online bank Egg.
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