Man bites Man over GLG deal

26 May 2010 By Neil Collins

Shareholders often suspect that management will do better from a takeover than they will. But outside shareholders in GLG are already being offered 50 percent more than insiders. So why launch a class action suit against the terms of the fund manager’s takeover by Man Group?

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A U.S. law firm, Bull & Lifshitz, has filed a class action in Delaware to contest the terms of Man group's takeover of fellow fund manager GLG Partners.

The firm argues that the terms are unduly favourable to the GLG management, at the expense of outside shareholders.

Outside shareholders are offered $4.50 a share, while the insiders, with about 48 percent of the equity, are offered 1.0856 Man shares, which are currently worth about 216 pence each. The terms will be watered down if the Man price rises to the equivalent of $4.25 per GLG share.

The offer values GLG at $1.6 billion.

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