Oversubscribed tender offer for Fidelity trust 'spells trouble'

Oversubscribed with 85.1% electing to tender

Shareholders of the £1.2bn Fidelity Emerging Market’s trust expressed their lack of confidence in the new management as its 25% tender offer was significantly oversubscribed, commentators have said.

In a stock exchange announcement today (19th October) the board trust said the 25% tender offer at a 2% discount to NAV was oversubscribed with £103.3m, representing 85.1% of shares, in issue electing to tender. Fidelity Investment Management recently took over the management of the company from Genesis Investment Management. "Huge take-up for Fidelity Emerging tender spells trouble," said James Carthew, head of investment company research at QuotedData. "The size of the vote against this decision was one indication that shareholders were uneasy. However, now we have decisive evidence...