Janus Henderson Group plc (NYSE:JHG) is included among the 15 Best Dividend Leaders to Buy Right Now.
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On March 6, Evercore ISI raised its price recommendation for Janus Henderson Group plc (NYSE:JHG) to $53 from $49. The firm reiterated an In Line rating on the shares. Evercore said it adjusted targets across the group after “taking an early look” at traditional asset managers’ February and first-quarter flows.
On March 11, Reuters reported that Janus Henderson said his board had determined that Victory Capital’s proposal to acquire the asset manager was not superior to the take-private transaction with Trian and Nelson Peltz’s General Catalyst. Victory had made public its $8.6 billion bid for Janus last month. The offer increased pressure on the company, which had already agreed to a $7.4 billion purchase by Trian and General Catalyst. Janus said Victory’s latest proposal was not actionable because it presented “a significant closure risk and uncertain value.”
The company also flagged several concerns, including uncertainty over how to secure the 75% customer consent threshold needed to complete Victory’s proposed deal. Janus Henderson Group CEO Ali Dibadj wrote in a memo that several key clients had indicated they would have serious reservations about maintaining relationships with the company if it moved forward with a deal involving Victory Capital. Victory Capital responded by saying that Janus had not meaningfully committed to its proposal. The firm argued that the concerns raised by the Janus special committee could be addressed through more detailed discussions.
Janus also said Victory’s projected synergies suggested aggressive cost reductions that could disrupt systems, lead to departures among investment staff and weaken compliance functions. TD Cowen’s Bill Katz said another bidder was unlikely to emerge, noting that any competing proposal would likely require similar cost savings.
The company added that Trian Fund Management, which owns 20.7% of its shares, plans to oppose Victory’s proposal. Janus also said Victory had not offered to cover the $297 million termination fee associated with the separate deal involving General Catalyst. The board reiterated its recommendation that shareholders approve the Trian-led transaction at the April meeting.
Janus Henderson Group plc (NYSE:JHG) is a UK-based independent global asset manager focusing on active investing across multiple asset classes. The firm manages a broad range of investment products for institutional and retail investors in four core capacities: equities, fixed income, multi-asset and alternatives.