UK - London-based investment manager Artemis Asset Management today said a buyout by its management could be an option for the future of the company, after Fortis announced it has increased its equity interest to become the sole shareholder.

Nick Wells, product and communications director at Artemis in London, told IPE this morning: "Management buyout is an option," though he declined to expand further on such a deal.

Artemis informed its clients this morning Fortis wants to explore strategic options for its investment in Artemis: "This process may lead to the transfer of Fortis' shareholding in Artemis to a third party."

According to Wells, talks have taken place with a third party, though he added the market turbulence had brought talks to a halt.

"Talks have taken place, but I think it is really the extreme turbulence that we have seen over the past few months that has prevented a deal from being completed with a third party," he said.

Fortis had held a 67.1% stake in Artemis prior to today as ABN Amro Asset Management held a majority interest in Artemis from 2002, and that holding was transferred to Fortis in April 2008 after the Dutch bank ABN Amro was taken over by a consortium of which Fortis was one part.

This latest step-up investment was pursuant to a prior contractual arrangement with Artemis management shareholders: "It was a shareholder agreement that was triggered at the point of change of control from ABN Amro to Fortis," explained Wells.

The cash consideration was €397.2m for the transfer of the remaining 32.9% of the shares.

Asked about timing of Fortis' announcement said: "It [the deal] was triggered 12 months ago and now 12 months are up, so it was the last day that it could happen."

According to Artemis, Fortis has recognised Artemis' entrepreneurial environment, which the Belgian-Dutch bank wants to see preserved.

Fortis has also agreed the management of Artemis will be fully involved in the decision-making concerning its future.

Wells concluded: "We have seen a number of pieces appear on websites and journals that they wanted to dispose of the holding; there will be further announcements in the near future."

Artemis was established in 1997 as an active investment management house specialising in investments for retail investors, though it now offers five institutional UK equity funds.

The firm had assets under management of approximately €18.7bn at the end of June.

If you have any comments you would like to add to this or any other story, contact Carolyn Bandel on +44 (0)20 7261 4622 or email carolyn.bandel@ipe.com

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