SHAREHOLDER hopes of a lucrative bidding war for GlobeOp jumped yesterday after US financial software provider SS&C Technologies suggested making a cash offer that would beat an agreed bid from private equity house TPG Capital.
SS&C proposed making a 485p a share offer for the hedge fund administrator, whose independent directors have said they would be willing to recommend it. Shares in GlobeOp, which is based in London and New York, closed up 5.95 per cent at 485.25p.
TPG, a US giant with $49bn of assets under management, responded by urging shareholders to “take no action”. It highlighted the fact SS&C has not made a formal offer and is still carrying out due diligence.
Last month TPG, which is trying to build a presence in the business of servicing the $2 trillion hedge fund industry, agreed a 435p cash offer valuing GlobeOp at £508m. Analysts now see that figure as too low.
SS&C, part- owned by private equity firm Carlyle, began due diligence in January on GlobeOp, which administers $173bn in client assets.
Analysts at Collins Stewart said: “The ball is now back in TPG’s court; we think that there is a good chance that it will improve on the SS&C proposed offer – possibly at the magical 500p level – although in theory it would only have to match 485p and add the element of certainty which is thus far lacking from SS&C... GlobeOp represents an attractive strategic asset.”