Old Mutual to raise up to $268 million in sale: Old Mutual increased the size of a forthcoming selldown of shares in its U.S. money management, which could net the group $268 million.
3 Jun '15
MY OWN GUESS (with some knowledge attached) The present fluctuationmay be partly due to the current employees staff selling their sharesave issue (last week)at the moment . Times this by number of employees = large number of shares being sold as they probably just want the cash NOW!!!! Be back up in couple of weeks is my guess as persons like myself buy them up at reduced value LOL
3 Jun '15
Can anyone tell me why this stock fluctuates so much please ?. Luckily I bought in a couple of years ago at around £1.60 but after last months euphoria as we approached £2.40 it now seems to have slipped back to a disappointing £2.15. Any thoughts or details on these fluctuations are most welcome. Thanks,
15 May '15
Old Mutual: here and there: Superficially, Old Mutual’s first quarter trading update on Thursday shows the London-listed financial services group to be doing fine. Gross sales, most of them from its U.K.-based wealth Manager, were almost a fifth higher at £7.3 billion. Yet Old Mutual — for all its guerrilla-like attack and retreat, expanding into and retracting out of businesses in the U.K., the U.S. and elsewhere — still earns two-thirds of its operating profit in its South African homeland. Giving up the U.K. domicile and listing would not be easy, though. And, depending on the success of outgoing Chief Executive Julian Roberts’ strategy, it could make sense to stay. Since he became Chief in 2008, Mr Roberts has done much of the work needed to solve the stay-or-leave conundrum. He has sold assets acquired in Old Mutual’s foreign forays, including much of Skandia (bar its U.K. wealth Manager) and a U.S. life assurer. He has listed a U.S. asset Manager and cut debt. He has also been on the attack, bolting U.K. investment Manager Quilter Cheviot on to Old Mutual Wealth, and expanding in Africa. Mr Roberts will pass the helm to Bruce Hemphill before the result of his strategy is known. He will, however, leave his successor a potential solution to the conundrum. Assume for a moment that the combined OMW and Quilter Cheviot achieves operating profit of £400 million in two years’ time. Apply, say, a Rathbone Brothers multiple to the prospective after-tax earnings of OWM and it could be worth £5 billion (Old Mutual’s current market capitalisation is £11 billion). If that prompts a re-rating of Old Mutual, pressure to split might subside. If not, it will be a signal that investors do not like either Old Mutual’s emerging market bias or its conglomerate status.
16 Apr '15
Old Mutual’s mixed bag requires a thorough tidy-up: Less tidily, the FTSE 100 group remains a mixed bag of businesses, ranging from a 52% stake in South African bank Nedbank, to a U.K. wealth management company. As a result, shares in Old Mutual trade at an earnings discount of 15-25% to peers. Conglomerate discounts are not inevitable — look at Whitbread and Associated British Foods. But they will occur when earnings have been patchy. Old Mutual toyed with selling its Nedbank stake in 2011. Instead, Mr Roberts bolstered the balance sheet by disposing of Nordic financial services units. Just as well. Nedbank now features in a promising plan to expand bancassurance operations into fast-growing African markets such as Tanzania and Nigeria. Old Mutual should go further. It should demerge or sell its U.K. wealth management business, which comprises financial advice and fund management, and which produced profits of £227 million in 2014. The group’s successful flotation of a U.S. asset Manager last year points the way. A demerger would let investors in London and Johannesburg have as much or as little exposure to each metropolis’s financial sector as they chose. Old Mutual came out of Africa. That is where its future lies.
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