By JASON HOLLANDS 28/11/2001
Our recent editorial Untamed Predator: New Star Stalks Artemis set out the reasons why we were uncomfortable about the proposed takeover of Artemis by New Star despite being positive towards both groups individually.
Our main concern was that the Artemis and New Star fund ranges were too similar. Both overlap directly in the UK and Europe and New Star will soon have an equity income fund that would overlap with Artemis.
We also felt that whilst the fund styles are not wildly different, the business management styles possibly are and that overall the Artemis fund managers might loose some of the control that has helped make their business a success.
Artemis have now confirmed that they have pulled out of the deal and we have immediately reinstated our recommendation on their funds.
We have also been told that Artemis were approached by New Star and that they were not actively looking for a purchaser although offers would be considered.
We do expect New Star to make other acquisitions and we will view each deal on its merits. Bolting on fund ranges that compliment its own will be viewed particularly favourably.
Jason Hollands