Among them is Johns Henderson Group plc (NYSE: JHG). 15 Best Profitable Leaders to Buy Right Now.
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On March 6, Evercore ISI raised its price target on Johns Henderson Group plc (NYSE: JHG ) from $49 to $53. The firm reiterated a Line rating on the stock. Evercore said it set targets across the group after taking an “early look” at traditional asset manager flows in February and Q1.
On March 11, Reuters reported that Janus Henderson said its board had decided that Victory Capital’s offer to acquire the wealth manager was no better than a private transaction with Nelson Peltz Trian and General Catalyst. Brea last month offered $8.6 billion for Janus People. The bid increased pressure on the company, which had already agreed to a $7.4 billion buyout by Trian and General Catalyst. Johns said Victory’s latest offer was unviable because it presented “significant closing risk and uncertain value.”
The company also cited a number of concerns, including uncertainty about securing the 75% customer satisfaction threshold required to complete the proposed breakthrough deal. Johns Henderson Group CEO Ali Dibadaj wrote in a note that several key clients indicated they would have serious reservations about maintaining relationships with the firm if it went ahead with a deal with Victory Capital. Victory Capital responded that Johns was not meaningfully involved with the proposal. The company argued that the concerns raised by the Janus Special Committee could be resolved through more detailed negotiations.
Janos also said that the anticipated consolidation of success suggested cost reductions that could disrupt systems, lead to exodus among investment staff, and weaken compliance functions. TD Cowen’s Bill Katz said another bidder is unlikely to emerge, noting that any competing offer would likely require similar cost savings.
The company added that Trian Fund Management, which owns 20.7% of its shares, plans to oppose the successful offer. Janos also said Victory did not offer to cover a $297M termination fee related to a separate deal involving General Catalyst. The board reiterated its recommendation that shareholders approve the Trian-led deal at its April meeting.
The Johns Henderson Group plc (NYSE: JHG) is a UK-based independent global asset manager focused on active investing across multiple asset classes. The firm manages a broad range of investment products for institutional and retail investors across four core competencies: equities, fixed income, multi-asset, and alternatives.
