Two papers carry stories on how Aberdeen Asset Management struggled through the negotiations that ultimately led to the £194m agreement between most of the providers of split capital investments trusts investigated by the FSA.
The Scotsman quotes chief executive Martin Gilbert stating the process was “harrowing”, having twice forced the company to delay publishing full-year results.
The deal cost AAM some £81m: £74m in compensation and £7m in legal fees, the paper says.
”Obviously the settlement is very, very good news for us. It’s not good to have to pay so much, but at least it’s behind us and now we can get back into the UK market."
Gilbert says the company did suffer from its association with splits, because potential investors would raise the issue at presentations, some even saying they could not do business with the asset manager because of the issue.
The Daily Telegraph notes some £39m of the compensation cost will be funnelled to investors in the Progressive Growth unit trust, which invested in zero dividend preference shares issued by splits.
The fund was advertised as “The one-year-old that lets you sleep at night”, the paper adds.
ATTEMPTS TO BUY the London Stock Exchange stepped up a gear yesterday, with talk of an offer to move some of Deutche Bourse’s operations to London to seal a deal, and German politicians stepping into the fray to warn against trying to undermine Frankfurt’s place on Europe’s financial map.
Meanwhile, Euroclear, the cross-border settlement business owned by its users has warned both the LSE and DB that regulators are unlikely to look favourably on a deal that would merge the two biggest exchanges with a clearing and settlement business also owned by the LSE.
The Times takes a slightly different tack, noting the LSE and DB have agreed to further talks, while the FT says pressure by the Germans to commit to a timetable for more talks is being resisted by Clara Furse, chief executive of the LSE.
Euronext, operator of the Amsterdam, Brussels and Paris exchanges, has said it has the funds in place to make an all-cash deal for the LSE, which was subject to an initial 530p per share bid from DB just before Christmas.IFAonline
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