Newly floated so I have been watching this one. It did not need to raise cash and the company has performed well for its investors but the shares fell soon after the float. now they are rising again I'm tempted--anyone else bought some??

http://www.dailymail.co.uk/money/article-1111559/New-Star-sees-swift-submission-initial-bids.html

Seems like there are rival bidders - could get interesting...

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/4214585/Schroders-tables-bid-for-ailing-New-Star.html

Looks like Schroders are there first.

New Star bid by Schroders

SCHRODERS has emerged as one of the bidders for New Star Asset Management, the troubled fund manager run by City veteran John Duffield, with a bid thought to be worth more than 100m.

Henderson, Gartmore and Aberdeen Asset Management are also in the running after tabling first round bids last week.

New Star was put up for sale late last year after its lending banks, led by HBOS, seized control.

http://business.timesonline.co.uk/tol/business/article5488941.ece

Excellent press mentions as expected and a bidding war should emerge. IMO should see the price get upto 5-6 pence minimum tomorrow.

Someone's posted this on iii:-

'The re financing deal has not yet been approved by share holders
If someone offered 100m before refinancing then this would be 38p per share after debt this would equate to 1.6% of FUM.
Surley there are others who agree with Gilberts view that NSAM are a "very good business"'.

Schroders among the suitors for New Star
By Andrea Felsted and Kate Burgess

Published: January 11 2009 18:54 | Last updated: January 11 2009 18:54

About 10 potential buyers, including Schroders, have submitted first-round proposals for New Star, the struggling fund management group.

Other parties that have submitted indicative proposals for the asset manager, which in December agreed a debt-for-equity swap with its banks, include Henderson, Gartmore and Neptune Investment Management. Aberdeen Asset Management has taken an opportunistic interest after its 200m share-based acquisition of Credit Suisses traditional fund management business.

People familiar with the situation said the price tag being put on New Star was substantially above 100m, although some other observers were sceptical that this level would be achieved.

New Stars banks, a consortium of HBOS, Lloyds TSB, HSBC, Royal Bank of Scotland and National Australia Bank, put New Star up for sale in December.

First-round bids were due to be submitted in early January.

A speedy sale would help to end uncertainty among clients about the future of the fund management group and stop more redemptions from New Star funds.

New Star, which managed more than 20bn six months ago, now has assets of about 11.5bn.

The bank consortium is hoping for a quick disposal of the whole group rather than a break-up, which it fears could leave it with a rump of the business that could be difficult to shift.

The asset manager has taken measures to retain key staff until March, and continues to work on restructuring its debt.

New Star was founded by John Duffield in 2000 after he left Jupiter, a rival fund manager. It established itself quickly as one of the best-known fund management names on the high street.

But it put itself in the hands of its banks after a sudden drop in confidence and a sharp rise in redemptions by clients following the property market downturn and poor performances from star fund managers.

The interest in New Star continues the wave of consolidation in the fund management sector. As well as Aberdeens deal, F&C, majority owned by insurer Friends Provident, continues to talk to potential acquirers, while insurance entrepreneur Clive Cowdery, who recently raised 600m, is keen on asset management because of economies of scale.

New Star and Schroders declined to comment.

http://www.ft.com/cms/s/0/047857f4-e00e-11dd-9ee9-000077b07658.html

Gartmore and Henderson lead New Star race

Date: 11 January 2009
By Terry Murden, Business and City Editor
GARTMORE and Henderson are believed to be front-runners in the bidding for New Star Asset Management, which is expected to be sold within weeks for upwards of 100m.

Aberdeen Asset Management has also been tipped as a contender by sources close to the sale process, even though chief executive Martin Gilbert has distanced himself from it.

Following previous indications that Aberdeen would not be in the frame, Gilbert says in an interview with Scotland on Sunday today that New Star will go to a cash buyer. In the current market his firm is not interested in raising debt to pay for acquisitions and has just bought the asset management business of Credit Suisse in a 250m all-paper deal.

Yet despite his apparent lack of interest, City sources have linked Aberdeen and New Star due to them being seen as a good fit and because of Gilbert's close relationship with New Star boss John Duffield.

"We would love to own it because it is a very good business, but our reluctance to take on debt will preclude us from the process," said Gilbert.

It is thought that up to 10 firms expressed interest in New Star, which saw its share price slide towards the end of last year, culminating in Duffield ceding control of 75% of the business to five banks in exchange for the cancellation of 240m of bank debt. This resulted in a strong outflow of funds, leaving New Star with a fund of about 14bn.

There were tentative attempts at a management buyout by Mark Beale and Richard Lewis, head and deputy head of New Star's institutional fund management arm. They were part of the team that joined New Star in 2000 from global investment manager WorldInvest. It was the acquisition of WorldInvest and its 1.1bn of funds that provided the launching pad for New Star.

Investment bank UBS is handling the sale, which is also thought to have attracted the attention of Neptune and Schroders.

"Neptune made a lot of noise, but people were puzzled as to whether it had got the cash," said one source. Schroders could still be among the likely buyers.

Indicative offers are now in, and it is thought that all parties want to see a deal finalised quickly.

Duffield is likely to depart as soon as the break-up of New Star is complete.

http://business.scotsman.com/bankinginsurance/Gartmore-and-Henderson-lead-New.4863582.jp

Statement re. Press Speculation (New Star Asset Man)

RNS Number : 4444L
New Star Asset Management Group PLC
12 January 2009


12 January 2009

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO OR FROM ANY
JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A
VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.

New Star Asset Management Group PLC ("New Star" or the "Company")

Statement regarding press speculation
New Star notes yesterday's press speculation concerning a possible sale of the Company.

On 3 December 2008 New Star announced that it had reached agreement in principle with its
lenders with respect to a capital
restructuring (the "Restructuring"). On 9 December 2008, New Star announced that it had
received a number of expressions of interest from
third parties in acquiring the Company's business and that it was considering possible
strategic alternatives to the Restructuring,
including a sale of the Company's business. New Star also confirmed that it was not then
engaged in discussions with any party regarding an
offer for the Company's ordinary shares.

New Star confirms that it has received indicative proposals from a number of third parties
with respect to the Company's business,
including a possible offer for the Company's ordinary shares, conditional upon, inter alia,
the Restructuring taking effect. These
expressions of interest are being considered.

All approaches made, whether in respect of the Company's business or in respect of the
Company's ordinary shares, are at a preliminary
stage and there can be no certainty that any transaction will be forthcoming or as to the
terms of any such transaction. Given the Company's
current and proposed capital structure (following the completion of the Restructuring), it is
not certain that any such transaction will
lead to a significant return, if any, to current shareholders. There can be no assurance that
any offer for the Company's ordinary shares,
if forthcoming, would be at or above the level of the Company's current share price.

In the meantime, New Star is committed to and continues to pursue the implementation of its Restructuring.

Any ideas how all of this translates into a possible share price?

up 23% on low volume
how high if the big players get involved?
bid definitely helping SP but the only thing in life that is certain is taxes and death. DYOR etc

Yes ! Given all the publicity yesterday,there has hardly been a stampede to buy ,yet !
The price now up 45%

2 buys just through for 500 k at 5.25p

A number of bidders.

I bought 77k at 2.75 last week

anyone heard any [legal] whispers re bidders/bidding around the financial markets.
i currently hold as a very small speculative punt[7500@2.75p]

no

no

yikes a big drop today. down 34%as i write.
would top up if i had the funds though it it could all go horribly wrong as they need a bid to materialise. predators circling but doesn't mean they will make an offer.

I think this paragraph from today's RNS sums it up.

"New Star's board of directors is actively pursuing possible alternatives to the restructuring with third parties, including an offer for the company or a sale of the company's business, but there can be no certainty that any such alternative transaction will be forthcoming, nor whether any such transaction (if forthcoming) would lead to a significant return, if any, to shareholders," the company said.

thanks skinny, missed the RNs cos i didn't see any news flag on the stockwatch page.
If the shares delist does that mean they are worthless or just not tradeable or both?
come on predators!!
Alex

No doubt the current hysteria hitting the financial sector has much to do with the move.It appears however to be based on relatively little selling,so that must be some sort of positive.