Apparently, the sale of Edinburgh Fund Managers could be done and dusted sometime this week. Earlier in negotiations, ISIS Asset Management was thought to be interested. However, they are now thought to have pulled away from any potential purchase. Britannic Asset Management would now seem to be the major player, with Aberdeen Asset Management and New Star Asset Management hot on their heels.
Industry commentators have mixed views about the possible purchasing companies and rumours that Edinburgh will be broken into sections are popular.
Our View
There is so much speculation about Edinburgh Fund Managers that we wonder if a deal to sell really is close. The company rejected a bid at the start of 2002 when its share prices were £5.70. Share prices are now around 71 pence and we wonder if Edinburgh are being pushed into a corner, having to sell to the highest bidder, regardless of whether the company is sold intact or broken up. Only time will tell, especially as the industry regulator, the Financial Services Authority is still looking into the Split Capital Investment Trust scandal.