Founder of Hargreaves Lansdown is considering ‘all options’ after shock foreign takeover bid

Economy
By Liam

By John-Paul Ford Rojas and Leah Montebello

Updated:

The co-founder of Hargreaves Lansdown said last night he was “looking at all options” after a shock foreign takeover bid left the investment platform’s future in doubt.

Peter Hargreaves said he was ‘watching with interest’ after the board rejected a £4.67 billion approach from a consortium including private equity group CVC and Abu Dhabi investors.

The 77-year-old tycoon, who is no longer involved in the day-to-day running of the company, owns an almost 20 percent stake worth just over £1 billion.

Reports suggested Hargreaves was open to taking the company private, but he told the Mail: ‘That’s a lie. I never said that.’

But he added: “I’m looking at all options. “I’m not really commenting because I don’t think there’s enough information out there.”

Inset: Peter Hargreaves, co-founder of Hargreaves Lansdown (pictured) said he was ‘watching with interest’ after the board rejected a £4.67 billion approach from a consortium of investors

Asked whether Hargreaves Lansdown should enter into discussions with its takeover candidates, he said: ‘That’s not for me to say. The directors have to make that decision, not me.’

The board said it “unanimously rejected” the surprise 985 pence per share proposal because it “substantially undervalues” the company.

Another London-listed company – shopping center operator Capital & Regional – confirmed it had received a takeover proposal from South African rival Vukile, while another rival Newriver was nearby.

Shares in Hargreaves Lansdown, founded in 1981, rose 14.4 per cent, or 141p, to 1120p, while Capital & Regional rose 18.5 per cent, or 9.5p, to 61p.

The latest rush brings the total value of bids made for British companies so far this year to more than £80 billion.

New figures from investment firm Dealogic, shared with the Mail, indicate there has been £73 billion in completed or ongoing deals and £8.5 billion in withdrawn or canceled advances this year.

Among the targets are packaging group DS Smith, telecoms testing company Spirent Communications and transport company Wincanton.

FTSE 250 cyber security group Darktrace recently backed a £4.2 billion takeover by US private equity firm Thoma Bravo.

But some companies, despite being targeted, have stepped up to the plate.

Anglo American this week rejected its third bid from rival BHP worth £39 billion, while Currys and Direct Line have both defended against bids.

Rumors circulated that Hargreaves Lansdown could be approached due to the weak share price.

Activist investor from British hedge fund Palliser Capital has called on Rio Tinto to halt its London stock exchange listing for Sydney. He said the miner’s dual corporate structure is a barrier to strategic plans, making it “difficult to make major acquisitions.”

Rio is the seventh largest company in the FTSE 100, with a value of over £70 billion.

The booming industry is the main target, says AJ Bell

The CEO of popular investment platform AJ Bell said yesterday it makes “complete sense” that the sector is being targeted by bidders after a shock takeover bid was rejected by rival Hargreaves Lansdown.

But Michael Summersgill declined to comment when asked whether his own company could attract similar interest from suitors.

Summersgill was speaking as AJ Bell published its half-year results, which showed a 47 percent increase in half-year profit to £61 million and a rise in customer numbers to more than half a million.

It prompted the shares to rise 11.2 per cent, or 40.5p, to 403p. yesterday in London

The price would also likely have risen with the disclosure of Hargreaves’ bid, boosting rivals’ valuations.

Summersgill said: “I see a huge growth opportunity in the platform market. That is a market that benefits from structural growth.

‘We are performing very well in that area and I see many ways in which we can strengthen our position even further.

“So I’m excited about the future of AJ Bell and I see how that can be applied to other companies in the space.

“I think it makes perfect sense that other people would see that and look for investment opportunities in it.”

When Summersgill was specifically asked to rule out AJ Bell being for sale, he said: ‘No comment.’

He added: ‘There are very well-defined ways to communicate around these types of topics and that’s how we would do it if we were ever in that position.’

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