New Star Asset Management Received Possible Offers

New Star Asset Management Group PLC (NSAM.LN) confirmed Monday that it is weighing several "indicative proposals" that could include a full takeover of the company.

The Sunday Telegraph reported that U.K. asset manager Schroders PLC (SDR.LN) and other financial groups last week submitted bid proposals for the business.

Without naming sources, the newspaper said that Schroders put in a bid thought to be worth in excess of GBP100 million for New Star and is considered a front-runner to take over the asset company.

Last month, the Financial Times reported that the troubled fund management group had attracted more than 10 potential bidders, including Henderson, Gartmore and Neptune Investment Management.

New Star, badly hit by the financial crisis, was taken under the control of five banks in December after agreeing to swap GBP240 million of debt for a 75% equity stake and a tranche of preference shares.

In its statement Monday, New Star said the proposals were at a preliminary stage and there was no certainty that a transaction would be agreed.

"Given the company's current and proposed capital structure (following the completion of the restructuring), it is not certain that any such transaction will lead to a significant return, if any, to current shareholders. There can be no assurance that any offer for the company's ordinary shares, if forthcoming, would be at or above the level of the company's current share price," New Star said.

New Star shares closed Friday at 3 pence and have lost 98% of their value in the past year.

Company Web site: www.newstaram.com

-By Digby Larner, Dow Jones Newswires; +33 1 4017 1748; digby.larner@dowjones.com

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New Star Asset Management (LSE:NSAM)
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