Franklin Equity Group Vote Torpedoes Break Up Bid
RHJ International, the owner of Kleinwort Benson had escaped a hedge fund move to break up the company. The exit plan came after its shareholders had rejected a motion to break up the firm during the annual shareholders meeting held last Tuesday.
The company's largest shareholder, Franklin Equity Group, had thrown its support behind the proposal to purchase BHF-Bank, the German private bank.
According to Ed Lugo, Senior Vice President and portfolio manager at Franklin, through a statement, said that the firm was frustrated with the performance of the company in the past few years. The investor though would continue to support to RHJ International.
This douses cold water on its efforts by a consortium of hedge funds such as Equilibria Capital with Polar Capital. They oppose the acquisition of BHF-Bank and requests the return of cash to its shareholders. It also seeks the election of a new set of board of directors.