Henderson in Gartmore bid rumours

Rumours are escalating in the City that fund manager Gartmore could be ripe for a takeover approach, as its share price is more than £1 below its December 2009 flotation price.

The Daily Mail reports the Henderson Group, which took over stricken New Star last year, could be the interested party.

Gartmore shares rallied yesterday by 3.7p to 117.3p amid speculation a larger manager has been running the slide rule over the business and is ready to make a formal bid approach for the group. The group has more than £22bn of assets under management.

Henderson bought New Star for £115m in April last year and the Mail reports chief executive Andy Formica is said to be eager to tie up another deal.

Gartmore has has a turbulent time since listing, with star manager Guillaume Rambourg suspended in March over allegations he broke company trading rules. Shares in the asset manager slumped 30% on the news.

Rambourg was later reinstated as an analyst, but resigned in July to concentrate on an FSA probe into his actions.