Man to buy GLG for $1.6bn

17th May 2010 08:02

Hedge fund manager Man Group has agreed to buy New York-listed rival GLG Partners for $1.6bn.Man will pay $4.50 a share in cash to public stockholders of GLG, representing a premium of around 55% to Friday's closing price. The combined group would have about $63bn of funds under management. The deal is expected to be earnings accretive in the financial year ending in 2012 and earnings neutral in the financial year ending in 2011.Chief executive Peter Clarke said: "The combination will provide comprehensive and compelling investment solutions to our investors worldwide, meeting investor demands head on and providing the acumen and flexibility investors are seeking in today's rapidly changing markets.""The fit between the two businesses is excellent; across investment strategies, geography and investor base. Man's quantitative and multi-manager expertise complements GLG's long track record in discretionary investment strategies, and both firms focus on liquid, transparent and dynamic trading."