Britain on the market: American predators in £240million swoop as bidding battle breaks out for London-listed funds agency

A bidding war has broken out for CAB Payments after American predators swooped on the cross-border payments company.

Shares in the London-listed firm jumped as much as 18.5 per cent to 93p after financial services firm StoneX Group lodged a 95p a share offer worth £241million.

That came after CAB rejected a string of offers from its largest shareholder Helios Investment Partners, including its latest proposal of 85p a share or £216million earlier this month.

In a statement, StoneX described its offer as ‘a compelling opportunity’ for CAB shareholders ‘at a significant premium’ to the from Helios.

‘StoneX sees a high degree of complementarity between CAB Payments and StoneX’s payments business, with the potential combination of both creating a leading, global specialist in emerging markets payments,’ it said.

‘StoneX is therefore confident that it is the best long-term owner and custodian of CAB Payments, with the potential combination unlocking incremental opportunities for key stakeholders.’

CAB Payments is just the latest London-listed firm to be targeted by would-be buyers

CAB, which has previously said the offers from Helios ‘fundamentally undervalue’ the business, said it is now ‘currently evaluating’ the StoneX proposal.

StoneX previously explored a deal for CAB, and entered into discussions in 2024, but ultimately walked away in November 2024 without making a formal offer.

Russ Mould, investment director at AJ Bell, said: ‘Shareholders in cross-border payments outfit CAB Payments may be relieved to see an external party emerge with a bid for the company after its major shareholder – Helios – had tried to take the firm private with what directors characterised as a low-ball offer.

‘The new proposal from US financial services group StoneX is higher than Helios’ bid and investors will now be watching if the first bidder comes back with improved terms.’

CAB is just the latest London-listed firm to be approached by overseas bidders this year with insurance group Beazley accepting an £8.1billion bid from Zurich and two-centuries old City institution Schroders agreeing to be taken over by US rival Nuveen for £9.9billion.

It comes after foreign takeovers of British firms rose to a four-year high of £65billion last year amid fears that British companies are being sold on the cheap – hollowing out the stock market and handing lucrative returns to foreign owners.