F&C Asset Management fights Sherborne boardroom coup

Asset manager F&C today accused rebel shareholder Sherborne of a "morally questionable" bid to seize control of the business by the back door.

The activist investor — which holds a 17% stake — called in December for chairman Nick MacAndrew to be ousted in favour of Sherborne founder Edward Bramson, and also wants two other directors on the board.

But MacAndrew today said Sherborne was trying to seize effective control of the £100 billion asset manager without paying a premium.

"It is adept but it is morally questionable," he said.

Sherborne has launched its bid to shake up the board without setting out any plans of its own on how to improve F&C.

MacAndrew said Sherborne had said "absolutely zippo" in two face-to-face meetings.

He added: "Their approach seems to be we have done this before, trust us'."

F&C chief executive Alan Grisay said the manoeuvres risked destabilising a business rebuilding after 18 months of uncertainty, sparked by Friends Provident's attempts to offload its 52% stake.

This was redistributed to shareholders in June, but F&C reckons the uncertainty cost it £2 billion in new business amid reluctance to recommend its products.