Henderson sets its sights on New Star

UK asset manager Henderson Group has indicated that it is interested in acquiring ailing fund management firm New Star. Responding to newspaper reports, Henderson confirmed it is in discussions with New Star 'regarding a possible transaction, including a possible offer for New Star'. But Henderson cautioned there was no certainty a transaction or offer would take place.

Both Henderson and New Star are listed companies and are active in real estate. Property accounts for EUR 8.9 bn of the total of EUR 53.3 bn in assets under management at Henderson. New Star's EUR 989 mln UK Property Unit Trust was launched in June 1999. The EUR 675 mln New Star International Property Fund was launched in June 2007. But New Star was forced to halt redemptions from the fund for an initial 28 days in November 2008 as cash-starved institutions sought to withdraw their investments.

In December New Star announced that a syndicate of banks is taking a majority stake in the group and New Star is de-listing from the stock exchange. The fund manager noted on Monday that a transaction or offer would be conditional upon completion of the proposed capital restructuring agreed with its bank syndicate.