Churchlow continues to target merger and acquisition activity

Legal & General Investments' Robert Churchlow has added two new positions to the £232.3m Growth trust ahead of expected merger and acquisition activity.

Churchlow, the group’s head of UK equities, who believes M&A activity will be the key theme for 2010, has added defence group Babcock and bus operator National Express to the porfolio. The two holdings replace Cadbury, which was sold following the takeover by Kraft, and Shanks, removed after a private equity bid approach fell through. Churchlow says Babcock’s shares have weakened following its bid to buy competitor VT Group. However, he believes a takeover would strengthen the firm in the future. “The market did not like the move and the original reaction on Babcock’s share price w...