Henderson agrees New Star takeover

Embattled investment group New Star Asset Management is set to be sold to rival Henderson in a deal valuing the fund manager at £115m (€127m), it was announced today.

Henderson’s offer will, if approved by shareholders, take place after New Star’s emergency restructuring deal, agreed with its banks late last year to convert £240m (€265m) of debt into equity.

It was also announced that New Star’s founder and chairman John Duffield will quit after the offer completes.

The takeover comes after a difficult time for New Star, which has been hit hard by the financial crisis.

Its funds under management have plunged from more than £23bn (€25bn) last summer to around £10bn (€11bn).