F&C shares soar 23% as ‘turnaround’ group acquires stake

F&C shares have soared almost 23% this morning after Sherborne Investors, a group which specialises in turning around recovery situations, took a 5% stake in the firm.

The Guernsey-based Sherborne bought has purchased 26,556,198 ordinary shares in F&C, at a total cost of £15.6m.

Sherborne Investors says it conducts "turnaround investing", aiming to improve the underlying business operations of companies in which it takes a position.

"The group may continue to acquire shares in F&C, but if it is unable to acquire a large enough shareholding at an acceptable price, the Group may elect to dispose of its shareholding in F&C and invest in another company.

"Further, pursuant to the group's investment policy the group intends that its shareholding in F&C will not reach such a level as to require the group to make a bid for the entire company."

F&C's share price has climbed by 11.75p, or 22.8%, 63.25p after an hour of trading.