British money manager F&C Asset Management plc says it is in advanced takeover talks with Bank of Montreal.
In response to public speculation, the firm confirmed Monday that it has received an indicative offer from BMO (TSX:BMO) of 120 pence ($2.19) per share in cash for all of its share capital. The firm says that the announcement does not represent a firm intention to make an offer “and there can be no certainty that an offer will be made.”
Rather, it says that the companies are in “advanced discussions” about the details of a possible offer; and it says that its board has indicated to BMO that it is likely to recommend a firm offer at the proposed price.
Under UK rules, BMO has until February 24 to either announce a firm intention to make an offer for F&C, or that it does not intend to make an offer.
As of Sept. 30, 2013, F&C had £90.1 billion ($164.4 billion) in assets under management, down from £92.3 billion ($168.4 billion) in June 2013.