Also, the series of higher lows since late February might be pointing to bets that IN wins.
From Wealth Manager:
UK M&A boom: the top targets in Rothschild AM's new fund
The managers of the recently launched Edmond de Rothschild Fund UK Synergy are confident that a remain vote at this year’s EU Referendum will spark a flurry of opportunity-rich mergers and acquisitions.
Managers Philippe Lecoq and Olivier Huet, who invest in target companies due corporate restructuring, argue that the referendum is suppressing a wave of potential deals.
'We have seen M&A trends falling dramatically around the Scottish Referendum. In the months after the event we saw a gradual recovery,' said Lecoq.
'We should see the same in the coming weeks. Now currency is weak as well versus the euro. Earnings momentum should improve for UK companies.'
The fund, which follows the same investment philosophy as the Europe Synergy fund the pair already co-manage, is around 95% invested in potential takeover targets. With a supressed market bringing about valuation opportunities, the pair are happy to have a mandate dedicated to the UK.
'We still favour the UK market because historically it has had a lot of opportunities within M&A,' said Lecoq. 'The UK market is much more liberal from our point of view. In other markets in Europe we face less protection on the industry.' ...MORE
