When Merrill Lynch bought Mercury Asset Management in November last year, it looked like a coup for the US bank, and excellent value for MAM’s shareholders. Merrill paid £17 a share, 33% more than the market price, so valuing the UK fund manager at £3.1 billion ($5.2 billion).
Sure, it was a full price, as Merrill’s chairman and chief operating officer, David Komansky, admitted at the time. But look at what it got them. Combined, the two firms’ funds under management now amount to $450 billion, which catapults them into third spot worldwide behind Fidelity and the Axa group.
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