Euronext makes bid for Allfunds

PAN-EUROPEAN stock market operator Euronext confirmed on Wednesday (Feb 22) it is interested in purchasing Allfunds, a British firm that provides services to fund managers.

Following media speculation Euronext said it had submitted an indicative offer for the Britain-based firm, which said the proposed cash-share transaction was worth 5.5 billion euros (S$7.83 billion).

“This indicative offer is currently under consideration by the Board of Allfunds and Euronext reserves the right to amend its terms,” the stock markets operator said in a statement.

It said the indicative offer is conditional, amongst other things, on reaching agreement with existing largest shareholders in Allfunds and there was no certainty a binding offer would be made.

Shares in the Amsterdam-listed Allfunds jumped 20 per cent to stand at 8.65 euros per share in afternoon trading, slightly less than the target price of 8.75 euros in the offer.

Allfunds said its board was currently reviewing the unsolicited offer, and noted it had not been party to discussions between Euronext and its large shareholders private equity firm Hellman & Friedman and French bank BNP Paribas, which together own 46.4 per cent of its capital.

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Euronext shares fell 6.3 per cent in afternoon trading. AFP