The co-founder of Hargreaves Lansdown last night said he was ‘looking at all options’ after a shock foreign takeover bid threw the investment platform’s future into doubt.
Peter Hargreaves said he was ‘watching with interest’ after the board rejected a £4.67billion approach from a consortium including private equity group CVC and Abu Dhabi investors.
The tycoon, 77, who is no longer involved in the firm’s day-to-day running, owns a near-20 per cent stake worth just over £1billion.
Reports suggested Hargreaves was open to taking the firm private but he told the Mail: ‘That’s a lie. I have never said that.’
But he added: ‘I am looking at all options. I am not really making any comment because I don’t think there is enough information out there.’
Stake: Hargreaves Lansdown co-founder Peter Hargreaves (pictured) said he was ‘watching with interest’ after the board rejected a £4.67bn approach from a consortium of investors
Asked whether Hargreaves Lansdown ought to engage with its takeover suitors, he said: ‘That is not for me to say. The directors must make that decision not me.’
The board said that it ‘unanimously rejected’ the surprise proposal of 985p per share, stating it ‘substantially undervalues’ the business.
Another London-listed company – shopping centre operator Capital & Regional – confirmed it had received a takeover proposal from South African competitor Vukile, while another rival Newriver was circling.
Shares in Hargreaves Lansdown, which was set up in 1981, rose 14.4 per cent, or 141p, to 1120p while Capital & Regional climbed 18.5 per cent, or 9.5p, to 61p.
The latest flurry takes the total value of bids made for UK companies so far this year to more than £80billion.
New figures from the investment firm Dealogic, shared with the Mail, suggest that there have now been £73billion completed or pending deals this year and £8.5billion in withdrawn or cancelled advances.
Among those targeted are packaging group DS Smith, telecoms testing company Spirent Communications and haulage firm Wincanton.
FTSE 250 cyber-security group Darktrace recently backed a £4.2billion takeover by US private equity firm Thoma Bravo.
But some companies, although targeted, have been putting up a fight.
Anglo American this week rejected its third bid from rival BHP worth £39billion, while Currys and Direct Line have both defended themselves from bids.
Rumours had swirled that Hargreaves Lansdown could be approached because of its weak share price.
Activist investor UK hedge fund Palliser Capital has called for Rio Tinto to abandon its London listing for Sydney, saying the miner’s dual corporate structure is a barrier to strategic plans, making it ‘difficult to do major acquisitions’.
Rio is the seventh-largest company in the FTSE 100, with a value of over £70billion.