THE TAKEOVER battle for hedge fund administrator GlobeOp was on a knife-edge last night after SS&C Technologies trumped a rival offer from private equity firm TPG Capital.
American financial software firm SS&C’s 485p-a-share cash deal, valuing GlobeOp at £572m, has won backing from the independent directors after beating the 435p cash offer TPG had agreed last month.
GlobeOp shares rose 1.59 per cent to 495p last night as the market waited to see if TPG came back with another bid for the firm, which is based in London and New York.
The US buyout firm, which has $49bn of assets under management, said it is considering its options and again urged shareholders to “take no action”. Along with its allies it has support covering 27.2 of GlobeOp shares.
SS&C, which is part-owned by private equity firm Carlyle, believes it can make cost-savings of at least $25m within three years if it completes a deal, for which it needs to win 70 per cent shareholder backing.
Chief executive Bill Stone (pictured) told City A.M. a tie-up would create a 500-strong new business development team, make lives easier for investors and improve industry transparency.
It would also create the world’s third-largest hedge fund administrator. Stone plans to offer jobs to members of GlobeOp management who want to stay on.
GlobeOp administers $173bn in client assets.