A CULL OF as many as 300 staff is expected if Henderson Group succeeds in its bid approach for the rival fund management house Gartmore, reports The Times .
According to the paper, Henderson would be looking for cuts equivalent to 60 to 70% of Gartmore’s payroll, claims one source familiar with the group.
Gartmore employs 530 UK staff while Henderson’s worldwide headcount is approximately 900. Cuts could come from both sides, but Gartmore would probably bear the brunt of the pruning.
Henderson is regarded as one of the front-runners to buy Gartmore, which has been put up for sale by its American owner, Nationwide Mutual. Roger Yates, chief executive of Henderson, has pledged he will only pursue the deal if it is earnings-enhancing.
The Times claims back-office staff, underperforming fund managers and employees in duplicated areas such as IT, personnel and finance are braced for the axe if Henderson succeeds. While specialist fund managers are nervously looking at the performance of their opposite numbers, as similar funds could be merged with only the better performer kept on.
PROPERTY WEBSITE Rightmove is to float at the top end of its revised pricing range when it lists on the London Stock Exchange, making it eligible for the FTSE250 index, reports The Daily Telegraph.
Rightmove, part-owned by estate agencies Countrywide and Connells, will float at or close to 335p on Friday, valuing it at up to £425m. The company's sole bookrunner, UBS, last week issued a revised 275p-335p range, which had been increased from 240p-315p.
The high float price, which some in the market are suggesting could yet reach 350p when conditional trading begins on Friday, comes amid a scramble for the shares from institutions.
The institutional offer will hand over at least 17% of the company's issued 126.8m shares. A further 8% are technically classified as in public hands to meet the London Stock Exchange's 25% free float requirement. At certain price-points, the offer could be 30 times oversubscribed because of the small free float.
NEW LIGHT WAS cast on Gordon Brown’s decision-making style with the release of Treasury documents suggesting he scarcely bothered to consult cabinet colleagues before scrapping a contentious reporting requirement for companies which ministers spent years developing, reports The Financial Times.
The documents concern his surprise announcement last November he was scrapping the Operating and Financial Review, which required all listed companies to produce an annual report on their prospects. The papers have been disclosed following a legal action brought against Brown by Friends of the Earth, the environmental lobby group.
The paper claims the documents will fuel fears that Tony Blair’s handover of power to Brown will exacerbate allegations of Downing Street’s presidential style. The disclosure will also boost investors, unions and green lobby groups who are fighting to retain the reporting rules – which also cover environmental issues.
According to the paper, Treasury officials also urged Brown to consult his cabinet colleagues about the proposed abolition, in a series of increasingly strong-worded memorandums sent in the two months preceding his announcement.
AND LLOYD'S OF LONDON, the three-centuries-old insurance market, named Richard Ward, former head of the International Petroleum Exchange, as its new chief executive yesterday, reports The Scotsman.
Lloyd's, the world's biggest insurance market, made up of 62 syndicates underwriting insurance, said Ward would start on 24 April. He succeeds Nick Prettejohn, who is leaving to become head of the UK arm of Prudential, Britain's second-biggest insurer.
Ward had been widely tipped as the front-runner for the top job at Lloyd's. He was chief executive of IPE, rebranded ICE, from 1999 to 2005, and has since been vice-chairman of ICE futures.
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Despite improved risk appetite
FOS award limit increase
Relates to 136 million transaction reports
Ceremony will take place 13 November