LONDON, Jan 29 (Reuters) - Activist investor EdwardBramson's Sherborne Investors and its broker Jefferieshave been buying shares in 3i, the British privateequity group said on Tuesday.
3i has been on a drive to reboot its flagging fortunes.
Former banker Simon Borrows took over as chief executivelast year following shareholder frustration at poor share priceperformance and weak results from its buyout business.
"Sherborne Investors through its associates and JefferiesInternational Limited have been trading in 3i shares duringJanuary," 3i said in a statement. "We believe that Sherborne hasacquired and then sold 3i shares to Jefferies."
The company said it believed Sherborne had acquired around0.7 percent of 3i's shares, which it had then sold to Jefferies,its adviser and broker. Jefferies also bought further 3i sharesand as of a week ago, owned around 1.6 percent of the company.
Last year Sherborne raised 207 million pounds ($325 million)with the aim of investing in an unspecified listed company itconsidered undervalued. A 1.6 percent stake in 3i would be wortharound 40 million pounds.
Shares in 3i, which was set up after the Second World War tohelp the reconstruction of British industry, were up 3 percentat 267 pence by 1242 GMT, their highest since August 2011. Thestock has risen around 47 percent since Borrows took over.
Bramson, a well-known but media-shy investor, has a historyof taking on the managements of companies he considersunderperforming.
He led a controversial boardroom coup at British fund firmF&C Asset Management in 2011, ousting the chairman andpursuing a root-and-branch shake-up of the 144-year old companyafter several years of lacklustre share price performance.
Last year, activist investor Laxey Partners asked for 3i tosell businesses and return the proceeds, but since 3i's changein leadership and action on cutting jobs and retrenching to itsnorthern European roots, Laxey has sold out its stake.
A spokeswoman for Sherborne declined to comment. Aspokeswoman for Jefferies could not immediately be reached.