Man Group Denies Split Report

by Carla Johnson, Investors Offshore.com

23 August 2005

Following a report in the Financial Mail on Sunday, hedge fund firm, Man Group has denied that it is planning to spin off its brokerage business.

Suggesting that Man Group bosses had been inspired by the flotation of New York-based brokerage, Refco last week, the Financial Mail announced that:

"The giant Man Group, which manages £25 bn for the world's super-rich, is weighing up splitting off its brokerage arm in a move that could create a £2bn FTSE 100 business."

"The demerger would be the biggest in the City for years and follows splits such as BT and O2, and Kingfisher and Woolworths."

"Man Group, best-known for its hedge fund activities, believes its brokerage business is being overlooked and would be worth far more as a separate company."

However, a spokesman for the firm told Reuters on Sunday that:

"Man regularly reviews the structure of its business in line with our commitment to achieve superior returns for shareholders. No decision has been taken to separate the Man Financial business from the remainder of the Man Group."

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