Henderson, the fund manager, is on the verge of sealing a deal to buy New Star, the troubled asset management group founded in 2000 by John Duffield, for £115m for a mix of shares and cash. The acquisition will follow the completion of the debt-for-equity swap agreed last month between New Star and its lenders. Henderson is expected to announce Friday it will pay about 2p a share, or £5m, in cash for New Star’s equity and a further £110m in a mix of cash and shares to the group’s banks, led by HBOS. Henderson, which has about £50bn of assets and net cash of £160m, is expected to take on about half of New Star’s 310 staff, including star fund managers such as Richard Pease.

This entry was posted by Gwen Robinson on Friday, January 30th, 2009 at 5:38 and is filed under Capital markets, M&A. Tagged with hbos, henderson, new star. Edit this entry.