United Asset Management’s affiliate money managers may be consolidated by Old Mutual, which also plans to revisit the affiliates’ revenue-sharing agreements and encourage them to cross-sell each other’s investment strategies, Old Mutual Finance Director Eric Anstee told security analysts in London this morning. He was speaking at a presentation to announce the South African financial services group’s $25-a-share bid for UAM, which values the company at $1.46 billion.
‘‘The original concept of the business was great . . . but the way that the revenue-sharing agreements were put together in the original acquisition needs to be revisited,’’ he said. ‘‘We will look at the future of each affiliate in a lot more detail in terms of how they will fit and what their future aspirations are.’’ He said Old Mutual already had spoken to a large number of the UAM affiliates. The deal is likely to be finalized in the fourth quarter of this year.
Mr. Anstee could not be reached for further comment by press time.
Separately, Old Mutual hired a team of money managers from Hill Samuel to launch an institutional asset management division in the United Kingdom. The new firm will be known as Gerrard Asset Management. John Ainsworth, currently CIO at Hill Samuel, will be CEO of Gerrard effective Aug. 1. The other managers are Peter Baxter, Fiona Hathorn, Ashton Bradbury, Adrian Farthing and Ian Pascall.
